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THE  ANNALS 

OF  THE 

AMERICAN  ACADEMY 


OF 

POLITICAL  AND  SOCIAL  SCIENCE 


ISSUED  BI-MONTHLY 


VOL  XXII,  No.  3 

NOVEMBER  1903 


Editor:  EMORY  R.  JOHNSON 
associate  editors:  SAMUEL  McCUNE  LINDSAY,  JAMES  T.  YOUNG 


PHILADELPHIA 

American  Academy  of  Political  and  Social  Science 
1903 


Copyright,  1903,  by  the  American  Academy  of  Political  and  Social  Science 
All  rights  reserved 


REMO"1-1 


ORAGE 


FIRE  INSURANCE  RATES  AND  METHODS 

111  the  spring  of  1902,  the  price  of  fire  insurance  throughout 
this  country  suddenly  rose  25  per  cent.  During  the  ensuing  hub- 
bub the  fire  insurance  companies  furnished  ingenious  explanations, 
and  waited  for  the  storm  to  blow  over.  For  the  remaining  months 
of  1902,  alone,  this  increased  charge  for  insurance  produced  about 
sixteen  million  dollars  more  income  to  the  companies. 

This  sudden  rise  in  the  price  of  fire  insurance  was  due  to  the 
application  by  the  companies  of  the  old  principle  of  charging  “all 
that  the  traffic  will  bear.”  Evidences  of'  commercial  prosperity, 
displayed  on  all  sides,  could  not  but  excite  the  cupidity  of  corpora- 
tions manifestly  in  business  for  the  benefit  of  their  exchequer.  A 
conclave  of  primemiovers  in  the  insurance  world  was  held,  at  which 
the  formula  was  adopted  that  “the  insurance  companies,  for  years, 
having  lost  much  money,  it  is  imperatively  necessary  to  raise  rates 
25  per  cent  and  said  raise  goes  into  effect  immediately.”  No 
esoteric  meaning  attached  to  the  words  “we  are  losing  money.” 
They  were  explained  as  meaning  that  the  profits  realized  from  the 
employment  of  capital  in  the  fire  insurance  business  were  inadequate 
to  keep  that  capital  from  flowing  to  other  more  remunerative  indus- 
tries. What  are  the  facts  of  the  case? 

From  the  tables  presented  at  the  annual  meeting  of  the  National 
Board  of  Fire  Underwriters  on  May  14,  1903,  it  is  found  that  the 
paid  dividends  of  the  American  joint-stock  fire  insurance  com- 
panies combined  have  averaged  from  i860  to  1902,  inclusive,  not 
less  than  11.14  per  cent.  Since  1892,  the  yearly  averages  have  been 
as  follows : 


Year. 

Per  ct. 

Year. 

Per  ct. 

1892  

10.51 

1898  

1893  

10-43 

1899  

H.65 

1894  

10.60 

1900  

II. l8 

1895  

1901  

1896  

II.24 

1902  

II.96 

1897  

n-33 

So  that  the  average  dividends  of  the  last  eight  years  have  been 
higher  than  the  average  of  the  last  forty-two  years,  and  the  divi- 
dends declared  in  1902  were  the  largest  since  i860. 

[413] 


341750 


2 


The  Annals  of  the  American  Academy 


Turning  to  the  market  price  of  fire  insurance  companies’  stocks,, 
the  investigator  is  confronted  with  symptoms  of  decided  prosperity. 
The  Insurance  Year  Book  for  1903  (published  by  the  Spectator 
Company,  New  York),,  on  pages  180  to  187,  quotes  the  ‘‘latest 
sale  of  stock  (per  cent)”  of  139  American  fire  insurance  companies. 
These  selling  prices  fall  into  the  following  subdivisions : 


$100  Stock  selling  below  100  1 

Stock  selling  at  101-150  65 

Stock  selling  at  15 1-200  25 

Stock  selling  at  201-300  23 

Stock  selling  at  301-400  13 

Stock  selling  at  401- 1400  12 


139 

Can  anything  be  discovered  in  these  prices  warranting  dis- 
appointment or  pessimism? 

It  should  be  remembered  that  the  income  of  the  fire  insurance 
companies  is  derived  mainly  from  two  sources : underwriting  and 
investment  of  funds.  So  that  dividends  on  capital  invested  are 
declared  out  of  the  profits  accruing  either  primarily  from  the  under- 
writing, or  secondarily  from  the  investment  of  funds.  An  under- 
writing loss  arises  when  the  indemnity  paid  out  for  loss  by  fire  and 
the  expenses  of  management  together  exceed  the  income  derived 
from  premiums  for  the  indemnity  furnished. 

The  alleged  total  underwriting  “loss”  of  all  American  com- 
panies in  1901  is  an  elusive  quantity  ; but  the  insurance  companies 
seem  to  have  agreed  to  give  it  as  “considerably  over  six  million 
dollars.”  For  argument’s  sake  we  might  assume  that  this  statement 
is  truthful.  It  would  then  follow  that  the  dividends  declared  by 
these  companies  in  1901  arose  from  profits  derived  from  the  sec- 
ondary sources  of  income,  after  making  good  the  alleged  under- 
writing loss  of  $6,000,000.  In  other  words,  if  the  primary  source 
of  income  showed  a debit  of  $6,000,000,  so  that  a dividend  of  11.63 
per  cent  was  declared  out  of  profits  derived  from  the  secondary 
sources  of  income,  it  is  obvious  that  but  for  this  debit  of  $6,000,- 
000  total  dividends  of  22.54  per  cent  could  have  been  paid  on  the 
capital  of  $55,000,000.  Either  one  of  two  things  follows:  when 
telling  the  public  “we  are  losing  money,”  the  fire  insurance  com- 
panies really  meant  “we  are  losing  money  on  one  of  our  sources 

[4H] 


Fire  Insurance  Rates  and  Methods 


3 


of  income  though  from  our  secondary  sources  of  income  we  are 
making  very  much  money,”  or  else  they  were  distributing  unearned 
dividends.  That  they  were  guilty  of  this  illegal  act  is  not  probable. 

So  far,  then,  it  seems  that  there  was  but  little  reason,  if  any,  for 

increasing  the  fire  insurance  burdens  of  this  country  25  per  cent. 

The  business  of  fire  insurance  in  this  country  is  not  only  highly 
profitable,  but  is  profitable  in  spite  of  an  extravagance  and  a waste 
of  money  which  in  any  other  industry  could  not  be  tolerated.  The 
combined  American  and  foreign  joint-stock  fire  insurance  companies 
doing  business  in  the  United  States  entered  into  contracts  for  con- 
tingent indemnity,  or,  to  use  the  technical  phrase,  wrote  the  follow- 
ing aggregate  amount  of  risks  : 

In  1902  $21,320,333,036 

In  1900  19,130,399,000 

An  increase  of  $2,189,934,036,  or  nx/2% 

They  paid  out  for  “commissions  and  brokerage” : 

In  1902  $37,628,785 

In  1900  29,705,775 

An  increase  of  $7,923,010,  or  26  2-3% 

In  other  words,  in  order  to  increase  sales  of  indemnity  by  11^2 
per  cent,  the  companies  actually  increased  the  commissions  paid  to 
their  agents  by  26  2-3  per  cent. 

Any  competitive  industry  which  treated  its  traveling  repre- 
sentatives, or  sales  agents,  similarly,  would  be  guilty  of  foolishness 
or  excessive  generosity,  and  in  either  case,  would  be  inviting  bank- 
ruptcy. The  peculiar  extravagance  of  this  method  of  doing  busi- 
ness is  more  apparent  when  consideration  is  given  to  the  following 
figures.  The  consideration  or  price,  or,  technically  speaking,  the 
premiums  charged  for  writing  the  foregoing  risks,  was : 


In  1902  $185,494,632 

In  1900 146,263,565 

An  increase  of  $39,231,067 


So  that,  out  of  an  increased  income  of  about  thirty-nine  millions, 
eight  millions  went  to  brokers.  In  other  words,  over  20  per  cent 
of  the  increase  of  money  arbitrarily  taken  from  the  public  went 

[415] 


4 


The  Annals  of  the  American  Academy 


immediately  into  the  pockets  of  insurance  brokers.  This,  it  should 
be  remembered,  happened  at  the  very  time  when  the  public  all  over 
the  country  was  being  told  that  “the  companies  were  losing  so  much 
money  that  there  was  nothing  left  to  do  but  to  raise  the  price  of 
insurance  25  per  cent” ! 

This  immense  drain  for  commissions,  made  upon  the  whole 
business  community,  is  not  only  excessive  and  unreasonable,  but  it 
is  a condition  of  affairs  which  has  been  steadily  growing  worse  for 
the  last  forty  years.  In  fact,  for  every  policy  or  contract  promising 
indemnity  to  the  amount  of  $100,  there  was  paid  as  “commissions 


and  brokerage”  the  following  sums  : 

In  the  years  1860-70,  an  average  of 10.5  cents 

In  the  years  1871-80,  an  average  of 13.9  cents 

In  the  years  1881-90,  an  average  of 15.6  cents 

In  the  years  1891-1900,  an  average  of 15.8  cents 

In  the  year  1901,  an  average  of 16.6  cents 

In  the  year  1902,  an  average  of 17.7  cents 


It  will  be  seen  that  the  payment  to  the  insurance  broker  has  steadily 
and  persistently  grown,  until  it  is  to-day  greater  than  at  any  time 
since  i860,  and  this  in  spite  of  the  fact  that  the  public  is  much 
more  desirous  of  insurance  and  more  than  ever  accustomed  to  assume 
the  duties  which  should  really  be  fulfilled  by  the  broker. 

So  far,  then,  it  is  found  that  dividends  paid  on  the  capital  invested 
in  the  fire  insurance  business,  and  the  commissions  paid  to  agents, 
are  higher  to-day  than  at  any  time  during  the  last  forty-two  years. 
Now,  it  will  be  admitted  that  the  prime  function  of  fire  insurance 
is  to  indemnify  the  public  against  loss  by  fire.  We  have  seen  that 
in  1902  all  the  United  States1  companies  combined  made  the  follow- 


ing payments : 

For  “commissions  and  brokerage”  $26,548,587 

For  “dividends”  6,554,570 

Total  $33,103,157 


These  thirty-three  millions,  of  course,  came  out  of  the  pockets 
of  the  insured.  Besides  the  $33,000,000  above  accounted  for,  there 
were  other  expenditures  incurred  in  the  conduct  of  fire  insurance  in 
this  country  the  disbursements  for  which  were  drawn  also  directly 

1 As  the  dividends  paid  by  foreign  companies  transacting  business  in  the  United  States 
are  in  a great  measure  dependent  on  the  results  of  European  underwriting,  they  cannot 
serve  as  a criterion  of  conditions  in  this  country,  and  therefore  are  not  considered. 

[416] 


Fire  Insurance  Rates  and  Methods 


5 


from  the  pockets  of  the  public.  Over  fourteen  million  five  hundred 
thousand  dollars  were  paid  out  for  sundry  expenses  by  these  same 
companies  in  1902.  So  that,  in  that  year,  these  American  companies 
combined  actually  retained  $47,644,000  for  themselves,  their  agents, 
and  their  expenses,  and,  as  indemnity  to  the  public,  they  paid — 
how  much  ? — less  than  sixty-six  million  dollars  ! Yet  every  penny  of 
this  money  was  furnished  by  the  insuring  public ! 

What  would  be  thought  of  the  methods  of  a savings  bank 
which  could  say  to  the  public : “We  shall  allow  you  to  deposit  your 
savings  in  our  bank  and  you  will  be  allowed  to  draw  on  your  account 
at  sixty  days’  sight,2  on  condition  that  for  every  $114  which  you 
deposit,  we  shall  be  allowed  to  retain  $48  for  ourselves,  this  sum 
to  be  retained  by  us  not  for  a certain  short  time  but  for  all  time”? 
That,  in  a crude  way,  illustrates  what  the  American  fire  insurance 
companies  said  to  the  public  of  the  United  States  in  1902.  They 
even  went  further,  as  will  be  shown. 

From  i860  to  1902,  inclusive,  the  average  yearly  premium 
on  a policy  of  $10,000,  charged  by  all  the  joint-stock  fire  insurance 
companies  doing  business  in  the  United  States,  has  been  as  follows : 


Y ears. 

1860-70  $80.32 

1871-80  94-32 

1881-90  98.80 

1891-95  IO6.4O 

1896-I9OO  IOI.48 

1901 106.05 

1902  II5.l8 


It  will  be  seen  that  the  price  charged  for  furnishing  insurance 
to-day  is  much  higher  than  at  any  time  in  the  last  forty-two  years. 
Leaving  this  phase  of  the  matter  out  of  the  question  for  the  time 
being,  one  finds  further  that  during  the  same  periods  these  contracts 
of  insurance  involved  the  fire  insurance  companies  in  the  following 
losses  by  fire  for  every  $10,000  of  risk  assumed  by  them  : 


Years 

1860-70 

1871-80 

l88l-90 

1891-95 


$46.55 

50.60 

48.70 

5I-67 


2 According  to  insurance  policies,  losses  are  payable  at  any  time  within  sixty  days  after 
ascertainment  thereof,  though,  in  justice  to  the  companies,  it  is  only  fair  to  say  that  in 
general  they  do  not  avail  themselves  of  the  full  delay  accorded  to  them. 


[417] 


6 


The  Annals  of  the  American  Academy 


Years. 

1896-I9OO  $42.92 

1901  45-15 

1902  44.17 


It  will  be  noted  that  fire  insurance  losses  are  not  growing  worse. 

The  difference  between  the  amount  deposited  by  the  public  with 
the  insurance  companies  and  the  amount  refunded  by  these  com- 
panies constitutes  the  gross  residue  retained  by  the  companies  for 
exercising  the  privilege  of  being  trustees  of,  and  depositaries  for,  the 
public’s  funds.  The  public’s  share  of  its  own  premiums  compares 
with  the  companies’  share  thereof  as  follows  : 


Gross  Residue 

Returned  of  Charge  to 

Years.  to  Public.  Public. 

1860-70  $46.55  $3377 

1871-80  50.60  4372 

l88l-90  48.70  50.10 

1891-95  ; 5I-67  54-73 

1896-I9OO  * 42.92  58.56 

1901  45-15  60.90 

1902  44-17  7i-Oi 


The  premiums  charged  to  the  public  have  been  such  as  to  permit 
a continually  growing  sum  to  be  at  the  disposal  of  the  companies, 
for  some  purpose  or  other,  after  reimbursing  the  public  for  losses 
suffered.  However,  that  is  a detail ; the  main  fact  which  we  wish 
to  keep  in  mind  is  this:  last  year  (1902)  the  average  charge  for  a 
policy  of  insurance  for  $10,000  was  $115.18  and  under  this  same 
policy  there  was  paid  out  an  average  indemnity  of  $44.17.  The  pub- 
lic made  a deposit  of  $115.18  and  of  this  sum  drew  out  $44.17.  The 
trustees  kept  the  change. 

Lest  it  may  appear  incredible  that  such  a condition  of  affairs 
really  existed,  the  following  corroborative  figures  are  reproduced 
from  the  latest  report3  (1903)  of  the  Insurance  Commissioner  of 
Connecticut.  It  should  be  remembered  that  the  figures  given  are 
compiled  by  the  Insurance  Commissioner  of  Connecticut,  from  the 
sworn  statements  of  the  companies  themselves.  They  cover  the 
operations  of  all  the  representative  American  stock  fire  insurance 
companies  and,  for  reasons  already  given,  do  not  cover  the  opera- 
tions of  European  companies  transacting  business  in  this  country. 

3 Any  one  can  obtain  this  report  for  the  mere  request.  The  figures  will  be  found  on 
pages  689  to  698.  Reports  published  by  almost  any  other  state  will  furnish  the  same  infor* 
mation,  though  in  somewhat  less  convenient  form. 

[418] 


Fire  Insurance  Rates  and  Methods 


7 


Income  during  the  year  ending  December  31,  1902  : 

$128,424,000 

4,887,000 

$133,311,000 

1.356.000 

6.351.000 

850,000 

4.500.000 


$146,368,000 

Outgo  during  the  year  ending  December  31,  1902  : 


Total  losses  . $64,383,000 

Dividends  6,021,000 

Commissions  and  brokerage 25,494,000 

Salaries  and  fees  7,770,000 

Taxes  3,334,000 

All  other  disbursements 9,519,000 


Fire  premiums,  net  

Marine  “ “ 

Total  

Interest  on  bond  and  mortgage 
Other  interest  and  dividends  , 

Rents  

All  other  sources  

T otal  income  


Total  outgo  $116,521,000 

The  foregoing  figures  represent  the  joint  operations  of  prac- 
tically all  the  American  fire  insurance  companies.  They  show  that 
after  paying  all  the  losses  of  the  year,  after  paying  out  half  as  much 
as  the  losses  merely  for  dividends  and  commissions,  after  paying 
out  all  the  disbursements,  the  total  income  exceeded  the  total  outgo 
by  about  thirty  million  dollars.  Now,  the  aggregate  paid-up  capital 
of  the  companies  in  question  was,  in  round  figures,  $47,000,000,  so 
that  this  excess  of  total  income  over  total  outgo  would  suffice  to  pay 
further  dividends  of  about  63  per  cent  on  the  paid-up  capital. 

It  will  be  said  that  much  of  this  $30,000,000  is  not  necessarily 
an  item  of  profit,  but  that  it  represents,  in  fact,  the  sum  of  premiums 
which  have  not  been  fully  earned.  Let  us  see  how  accurate  this  is. 
The  law  requires  fire  insurance  companies  to  have  on  hand  an 
“unearned  premium  fund/’  amounting  to  one-half  of  what  is  paid 
in  to  them,  so  that  a policyholder  canceling  a policy  may  be  reim- 
bursed the  ratable  portion  of  the  premium  paid.  This  liability  is 
constantly  being  incurred,  and  constantly  being  removed.  For  the 
dollars  which  at  this  moment  are  being  impounded,  there  are  the 
dollars  being  released,  which  were  put  in  escrow,  as  it  were,  a year 
ago.  Thus,  the  “liability  reserve”  can  only  be  considered  to  affect 
our  statement  in  regard  to  that  portion  of  the  above  $30,000,000 

[419] 


8 


The  Annals  of  the  American  Academy 


which  corresponds  to  an  increase  of  business.  If,  in  this  month,  a 
company  receive  as  premiums  $1,100  for  every  $1,000  which  it 
received  in  the  corresponding  month  of  last  year,  it  is  evident  that 
under  the  provisions  of  the  law,  for  every  $1,100  which  it  impounds 
to-day  it  can  release  but  $1,000  of  fully  earned  premiums.  Now, 
the  natural  increase  of  business  does  not  materially  affect  this  $30,- 
000,000.  Let  it  be  assumed  that  in  one  way  or  the  other,  even  one- 
half  of  this  sum  disappeared  in  the  next  twelve  months,  there  would 
still  remain  a sum  equal  to  32  per  cent  on  the  capital,  available  for 
dividend  purposes ! 

We  may  be  told,  also,  that  most  of  this  $30,000,000  would  be 
placed  in  a surplus  fund,  to  be  used  for  the  benefit  of  the  public  in 
case  of  a sweeping  fire  bringing  unusual  loss.  The  companies  have 
been  providing  for  this  possible  calamity  for  years,  by  means  of 
greatly  inflated  surplus  funds  created  by  the  public,  and  earning 
great  interest  and  dividends.  But  the  days  of  conflagrations,  such 
as  swept  Chicago  thirty  years  ago,  have  probably  gone  and  a con- 
tingency so  remote  should  not  be  made  the  excuse  for  a perpetual 
heavy  tax  of  insurance.  One  of  the  latest  calamities,  that  which 
visited  Jacksonville,  Fla.,  caused  an  insurance  loss  of  only  $5,932,500. 
As  compared  with  the  surplus  above  mentioned,  surely  an  insignifi- 
cant sum. 

That  the  companies  themselves  do  not  really  worry  about  the 
possibilities  of  sweeping  conflagrations  repeating  the  events  of  thirty 
years  ago,  may  be  gathered  from  the  fact  that  they  do  not  hesitate 
to  risk  their  all  on  the  chance  of  such  calamities  not  being  repeated, 
as  witness  the  congested  district  of  Chicago,  where  alone  $170,000,- 
000  is  at  stake.  Proportionately  large  sums  are  risked  similarly,  in 
the  conflagration  districts  of  Philadelphia,  Boston  and  other  large 
towns.  It-  will  be  shown  below  that  even  in  regard  to  this  con- 
flagration fund  the  public  is  being  sorely  abused. 

The  full  extent  of  the  exploitation  to  which  the  public  submits 
is  understood  only  after  tracing  the  origin  of  the  secondary  sources 
of  income  enjoyed  by  the  fire  insurance  companies.  If  we  revert  to 
the  income  and  outgo  account  for  the  year  1902,  we  find  that  over 
thirteen  million  dollars  out  of  a total  income  of  $146,000,000  was 
due  to  “interests,  dividends,  rents  and  other  sources.”  This  $13,- 
000,000  arose  from  what  is  generally  called  the  “investment  income” 
in  contradistinction  to  the  remainder,  the  “underwriting  income.” 

[420] 


Fire  Insurance  Rates  and  Methods 


9 


The  paid-up  capital  of  the  companies  furnishing  this  income 
account  amounted  to  about  $47,000,000.  This  sum  was  in  no  wise 
sunk  as  it  would  be  if  invested  in  any  industry ; none  of  it  went  into 
machines,  raw  material,  mines,  rolling  stock,  or  right  of  way.  It 
was,  all  the  time,  visible,  tangible,  dormant  in  the  banks.  It  was 
practically  a token  of  good  faith,  nothing  more.  By  reason  of  this 
deposit  in  the  banks,  by  virtue  of  this  evidence  of  good  faith,  the 
owners  of  this  $47,000,000,  by  law  were  permitted  to  offer  insurance 
against  fire  and  to  demand  for  this  insurance  such  consideration  as 
they  pleased  and,  among  themselves,  agreed  to  charge.  The  public, 
having  accepted  these  offers  of  insurance,  drew  from  its  pockets 
considerations,  called  “premiums,”  to  the  amount  of  over  one  hun- 
dred and  twenty-eight  million  dollars.  Of  this  $128,000,000,  there 
was  refunded  as  indemnity  for  losses,  $64,000,000.  The  remainder 
of  these  premiums,  $64,000,000,  and  the  original  $47,000,000  which, 
of  course,  was  intact,  belong  to  the  fire  insurance  companies,  by  law. 
They  could  close  their  business  to-morrow  and  the  public  could  not 
say  nay. 

Instead,  the  companies  left  their  capital  of  $47,000,000  in  the 
banks,  and  out  of  that  part  of  the  premiums  not  touched  by  fire  they 
paid  dividends  and  commissions  and  salaries  and  taxes,  and,  as  has 
been  seen,  had  a great  fund  left  over.  This  fund,  amounting  to  many 
millions,  they  placed  in  the  banks,  alongside  of  the  untouched  capital 
of  $47,000,000,  and  they  called  it  a surplus  fund,  put  there  to  pay 
losses  in  case  the  public  had  another  Jacksonville  fire. 

Now,  since  the  public  furnished  all  the  premiums  out  of  which 
all  the  losses  and  all  the  dividends  and  all  the  salaries  and  all  the 
other  items  were  paid,  the  surplus,  or  conflagration  fund,  was  in 
reality  the  excess  charge  demanded  of  the  public  over  and  above 
what  was  sufficient  compensation  for  trouble  and  risk  taken ; though, 
if  any  Jacksonville  fire  should  recur,  the  indemnity  for  the  fire  would 
be  paid  out  of  the  accumulated  surplus  saved  out  of  the  public’s 
money,  and  next  year,  the  public  would  be  further  assessed,  the 
“recent  conflagration”  serving  as  excuse ! 

All  of  this  money,  all  of  this  excess  charge  over  and  above  the 
amount  necessary  to  recompense  the  custodians  and  administrators 
of  the  public’s  contributions,  should  be  held  in  trust  as  the  property 
of  the  insuring  public.  By  all  moral,  ethical,  and  financial  rights, 
the  conflagration  fund  belongs  to  the  insurers.  But  it  never  will  be 

[421] 


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theirs — unless  the  law  is  changed.  Instead,  this  fund  will  grow,  and, 
growing  too  big,  some  fine  day  it  will  melt  away  as  an  “extra  divi- 
dend” of  40  or  60  per  cent,  or  else  it  will  amalgamate  with  the 
dormant  capital  of  $47,000,000  so  that  the  shareowners  will  own 
two  shares  of  stock  where  now  they  own  but  one. 

But,  it  will  be  said,  supposing  that  the  companies  owning  this 
capital  of  $47,000,000  had  not  been  able  to  pay  losses  and  expenses 
and  dividends  out  of  the  contributions  of  the  public,  would  they  not 
have  drawn  upon  this  $47,000,000,  their  capital?  Assume  that  they 
had : the  inevitable  result  would  be  that  next  year,  the  public  would 
be  forced,  willy  nilly,  to  pay  enough  to  make  good  the  impairment 
of  the  $47,000,000,  and  besides  that,  would  be  severely  taxed  for  not 
having  in  the  previous  year  contributed  enough  premiums  to  pay 
for  all  its  losses  and  all  the  commissions,  and  all  the  dividends  and 
the  sundry  items  and  the  conflagration  fund. 

It  is  a distinctive  feature  of  these  insurance  companies  that  they 
act  as  one  man,  throughout  the  country,  in  every  town  and  village. 
There  is  no  competition  among  them  but,  on  the  contrary,  a most 
exclusive  and.  brotherly  entente  cordiale.  Hence,  when  in  the 
recesses  of  their  council  chambers  they  reach  a conclusion,  be  it  right 
or  wrong,  that  they  have  “lost  money,”  with  hearts  that  beat  as  one 
they  set  out  to  seek  that  which  they  have  lost ; and,  so  far,  their 
quests  have  been  successful. 

It  is  seen  that  by  reason  of  practically  depositing  a bond  of  $47,- 
000,000,  fire  insurance  companies  were  entrusted  with  premiums  of 
$128,000,000.  Whilst  they  were  the  custodians  of  these  premiums, 
their  capital  was  earning  interest,  even  if  only  a beggarly  3 per 
cent.  In  the  same  way,  the  trust  fund,  the  $128,000,000  was  earn- 
ing interest — which  interest  was  retained  by  the  trustees ; of  course, 
not  interest  on  $128,000,000  for  365  days,  for  this  trust  fund  came 
in  gradually,  and  little  by  little  some  of  it  disappeared  for  fire  and 
expenses.  But  a great  deal  was  there  all  the  year.  If  it  be  assumed 
that  in  view  of  what  was  held  for  the  year  the  whole  amount  earned 
an  average  of  3 per  cent,  then,  $3,840,000  would  have  been  earned  as 
interest  or  dividends.  In  the  same  way,  at  the  end  of  the  year,  when 
the  conflagration  fund  became  swollen  by  the  excess  of  the  public’s 
contributions,  another  source  of  “interest  and  dividends”  was  created. 

On  the  supposition  that  the  above  modest  sum  of  $3,840,000 
could  have  been  earned,  it  would  of  itself  have  sufficed  to  pay  a 

[422] 


Fire  Insurance  Rates  and  Methods 


ii 


dividend  of  8 1-6  per  cent  on  $47,000,000,  which  dividend,  added  to 
the  3 per  cent  (assumed  to  be  earned  by  the  $47,000,000  lying  in 
the  banks)  would  make  11  1-6  per  cent  joint  interest  and  dividends. 
A handsome  return  on  money  invested,  as  investments  go  to-day ! 

From  the  observations  immediately  preceding,  one  may  gather 
that  the  interest  earned  on  the  capital,  merely  deposited  in  banks, 
and  the  interest  derived  from  the  use  of  the  public’s  premiums 
together  produce  an  income  ample  enough  to  enable  the  companies 
to  renounce  all  further  claims  to  compensation ; that  is,  to  run  the 
underwriting  account  at  bare  cost,  without  a cent  of  profit. 

Underwriting  profits  such  as  are  insisted  upon  by  the  insurance 
companies  are  in  the  nature  of  extortion,  and  a display  of  their 
underwriting  results  alone,  without  a simultaneous  display  of  their 
investment  profits,  is  a delusion  of  the  insuring  public. 

The  public  may  view  with  a certain  amount  of  indifference  the 
fact  that  it  furnishes  all  the  funds  that  go  to  indemnify  it  for  losses ; 
that  it  sacrifices  at  least  one-half  of  its  contributions  for  the  sake  of 
having  the  remaining  half  administered;  it  may  contemplate  with 
equanimity  the  fact  that  this  cost  of  guardianship  is  to-day  greater 
than  ever  before-;  it  may  overlook  the  greed  of  companies  which 
exact  to-day  the  greatest  dividends  since  i860;  it  may  know  that  the 
recent  startling  increase  in  the  rates  was  absolutely  unwarranted, 
and  that  20  per  cent  of  the  spoils  thereof  immediately  went  to 
brokers,  already  better  paid  than  ever  before.  Yet  surely  the  public 
temper  should  be  stirred  when  it  reflects  that  it  is  not  even  given 
credit  for  the  serious  and  persistent  efforts  which  it  has  made,  and 
continues  to  make,  in  the  direction  of  fire  prevention  and  extinction  ! 

In  the  last  thirty  years  vast  improvements  in  protection  have 
been  made  by  the  public ; buildings  are  better  constructed ; fire- 
retarding  materials  and  devices  have  been  introduced ; fire  alarms, 
watchmen’s  clocks,  automatic  sprinklers,  chemical  fire  pails  nave 
been  put  in  ; water  supplies  and  pumps  have  been  improved  ; hazards 
recognized  and  avoided ; better  brigades  drilled  and  maintained , 
better  equipments  furnished — in  fact,  the  responsible  insured  have 
spent  huge  sums  to  keep  fires  down.  Fires  have  been  kept  down, 
as  the  figures  show,  and  yet,  the  vast  expenditures  by  propertv 
owners  to  protect  their  premises  and  cities,  so  as  to  avo:d  fire  and 
to  provide  for  its  prompt  extinction,  have  merely  resulted  in  the 
highest  average  premium  in  the  last  forty-two  years.  Is  it  not 

[423] 


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evident  that  there  is  something  woefully  defective  in  the  system  that 
brings  about  such  results  ? 

It  would  be  impossible  within  the  space  now  at  command  to 
deal  with  every  aspect  of- fire  insurance  deficiencies.  An  endeavor 
has  been  made  to  show  that,  viewing  the  question  on  its  economic 
or  financial  side  only,  the  public  is  being  wretchedly  exploited.  Only 
a brief  indication  can  be  given  of  how  this  exploitation  is  accentuated 
by  the  languid  attitude  of  the  companies  and  their  agents  towards  the 
ethical  elements  of  insurance.  It  has  been  shown  that  the  whole 
fire  insurance  bill,  with  the  terrible  waste  and  insatiable  greed 
involved,  has  to  be  settled  by  the  section  of  the  business  community 
which  is  responsible  and  honest.  It  is  one  of  the  worst,  one  of  the 
most  glaring,  defects  of  the  present  methods  of  insurance  that  the 
insured  are  not  only  heavily  taxed  for  the  benefit  of  their  trustees, 
but  that,  in  view  of  the  fact  that  four-fifths  of  the  fire  loss  is  due  to 
incendiarism  and  criminal  carelessness,  the  honest  and  careful  must 
pay  heavily  for  the  crime  and  folly  of  the  unscrupulous  and  careless. 

It  is  unreasonable  that  for  so  many  years  in  succession  the  fire 
loss  should  maintain  such  huge  dimensions.  This  heavy  loss  has 
persisted  because  of  the  erroneous  principles  upon  which  the  business 
of  insurance  is  conducted.  Consider  one  element  alone,  the  accept- 
ance of  a risk : in  nearly  every  case,  the  desirability  of  accept- 
ing a risk  should  be  gauged  by  the  moral  character  of  the  applicant 
for  insurance.  The  nature  of  this  character,  whilst  ascertainable 
by  the  agent  familiar  with  local  conditions,  is  most  often  beyond  the 
ken  of  the  companies’  head  men.  The  man  who  is  to  receive  20  per 
cent  of  the  premium  is  naturally  not  too  cautious  in  regard  to  the 
acceptance  of  risks,  and  certainly,  with  this  20  per  cent  in  prospect 
it  would  be  strange  if  the  benefit  of  a doubt  were  not  given  in  his 
own  favor.  It  is  well  known  that  among  stock  companies  no  ade- 
quate or  efficient  system  exists  for  checking  moral  risks,  and  it  is 
equally  well  known  that  the  vast  majority  of  fire  losses  are  con- 
sequent upon  moral  laxities  of  some  kind  or  other,  chief  among 
which  may  be  classed  gross  negligence  and  carelessness  and  other 
preventable  conditions.  With  the  great  majority  of  applicants  for 
insurance,  the  prevailing  methods  are  inadequate  to  gauge  these 
qualities. 

Much  loss  also  could  be  obviated  if  the  companies  sought  more 
actively  to  eliminate  the  causes  of  fire  and  to  increase  the  facilities 

[424] 


Fire  Insurance  Rates  and  Methods 


13 


for  extinguishing  it,  rather  than  to  await  its  scourgings  and  then  to 
raise  prices.  The  easiest  manner  of  recouping  themselves  tor  losses 
has,  of  course,  been  the  raising  of  rates ; but  this  act  does  not  coerce 
destructive  elements  and  classes  into  becoming  a profitable  invest- 
ment, at  least  it  never  has.  It  merely  swells  the  agents’  income  and 
places  a heavier  burden  on  the  honest  insured.  The  most  efficacious 
means  of  improving  fire  conditions  is  to  enlist  personal  selfishness 
on  the  side  of  fire  prevention.  As  long  as  a state  which  invites  fire 
costs  for  insurance  scarcely  more  than  a condition  which  precludes 
fire,  50  per  cent  of  the  premiums  will  burn  up,  each  year.  For, 
to-day,  most  people  buy  insurance  because  it  allows  them  to  become 
more  careless. 

Among  heavy  insurers,  the  truth  begins  to  be  realized  that  they 
have  been  grouped  and  allied  with  innumerable  heterogeneous  and 
utterly  undesirable  elements*  for  the  purpose  of  paying  individual 
losses  out  of  the  common  purse.  Also,  the  conviction  gains 
ground  that  under  existing  methods  of  insurance  those  who,  as  a 
class,  have  an  excellent  record,  and  do  not  burn  down,  must  neces- 
sarily pay  the  indemnity  given  to  those  classes  who  do  burn  down 
frequently,  whether  accidentally  or  with  pleasure  aforethought. 
These  heavy  insurers,  in  many  instances,  have  discovered  that  it  is 
possible  to  form  from  among  themselves  a homogeneous,  mutually 
protective  group,  rigidly  defined  in  regard  to  business,  moral,  and 
physical  hazard.  They  have  thereby  set  up  conditions  of  mutual 
service  which  can  be  watched  and  controlled  for  the  best  benefit  of 
all  concerned.  They  have  not  been  burdened  with  the  losses  arising 
from  elements  more  dangerous  than  themselves,  whether  the  dangers 
were  inherent  to  the  business  conducted  or  to  the  character  of  the 
persons  engaged  therein.  The  consequence  of  such  action  has  been 
that  these  groups  of  insurers,  associated  for  mutual  helpfulness,  have 
made  immense  savings  whilst  securing  ample  protection.  No  better 
illustration  of  the  results  obtainable  by  such  organization  can  be 
afforded  than  by  the  New  England  Mutuals,  which  to-day  insure 
over  one  billion  four  hundred  million  dollars’  worth  of  factory 
property  at  a net  cost  of  about  fourteen  cents  per  $100  of  insurance. 

Despite  the  great  difficulties  of  organization  and  of  develop- 
ment attaching  to  such  associations  for  mutual  benefit,  despite  the 
spirit  of  suspicious  antagonism  often  evinced,  and  the  short-sighted- 
ness often  displayed  when  the  public  is  asked  to  bestir  itself  for 

[425] 


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The  Annals  of  the  American  Academy 


self-interest  and  common  benefit,  the  business  community  more  and 
more  will  protect  itself  against  loss  by  fire,  by  forming  voluntary 
associations  of  men  known  to  each  other,  engaged  in  the  same  busi- 
ness, exposed  to  the  same  hazards,  and  convinced  of  their  individual 
inability  to  have  “a  successful  fire.”  For  such  as  fail  to  ally  them- 
selves under  such  conditions  and  for  such  purposes  there  will  always 
remain  the  present  method  and  plan  of  insurance.  However,  the 
dignity  of  the  profession  and  the  public  peace  of  mind  call  aloud  for 
the  introduction  of  more  intelligent,  more  economical,  less  distasteful, 
and  less  evident  methods  of  exploitation. 


Philadelphia. 


Walter  C.  Betts. 


TRADES  UNIONISM 


For  several  years  our  country  has  been  subjected  to  uncer- 
tainty and  disturbance  on  the  part  of  industrial  workers  to  an  unpre- 
cedented and  very  alarming  extent.  The  whole  country  has  suf- 
fered and  a large  part  of  the  people  have  been  directly  affected 
thereby.  This  situation  has  culminated  in  the  outbreaks  or  strikes 
of  the  past  year,  which  have  tied  up  many  important  industries. 
Naturally,  the  greatest  interest  has  arisen  in  the  means,  the  organiza- 
tions, by  which  this  situation  has  been  effected.  These  organizations 
are  the  trades  unions,  and  what  they  are,  what  their  aims  are,  and 
what  means  are  employed  to  realize  these  aims,  are  questions  of 
deepest  national  import. 

Trades  unions  are  combinations  or  associations  of  workmen  of 
the  various  trades  for  the  mutual  support  and  advancement  of  what 
the  association  considers  its  best  interest.  For  their  origin  we  must 
look  back  at  least  to  the  “guilds”  of  the  Middle  Ages — before  the 
introduction  of  the  factory  system  or  of  any  but  the  crudest  mechani- 
cal devices.  The  industrial  relations  were  of  the  simplest  nature,  the 
“business”  was  run  in  a patriarchal  way.  Gradually  the  head  of  the 
business  became  a merchant  and  always  further  removed  from  the 
ranks  of  the  artisans.  Disputes  soon  arose  as  to  the  manner  of  doing 
work  or  concerning  the  pay  therefor,  and  in  1776  we  find  Adam 
Smith  writing,  as  of  a familiar  thing,  of  combinations  being  formed 
by  workmen  to  collectively  force  up  the  price  of  their  labor.  Such 
combinations  were  regarded  in  England  as  late  as  1824  as  “conspira- 
cies in  restraint  of  trade  and  illegal.”  As  a result  of  repressive  laws, 
a fraternal  feeling  sprang  up,  heavy  oaths  and  a policy  of  secrecy 
were  adopted,  beneficial  features,  such  as  sick,  accident,  superannua- 
tion, and  death  benefits,  were  instituted,  and  defence  funds  founded. 
Many,  if  not  all,  of  these  features  still  persist,  although  the  outward 
forms  of  the  bonds  have  been  eliminated.  Through  political  agita- 
tion, largely  induced  by  the  unions,  factory  acts,  mines  acts,  and 
employer’s  liability  acts,  have  been  passed  in  all  civilized  countries, 
nearly  all  of  which  have  been  highly  favorable  to  the  wage-earning 
class.  The  State  of  Pennsylvania  in  1872  recognized  the  right  of 
members  of  labor  organizations  to  refuse  to  work  under  regulations 
contrary  to  the  rules  of  the  organization,  but  further  provided  that 

[427] 


1 6 The  Annals  of  the  American  Academy 

“nothing  shall  prevent  the  prosecution  and  punishment,  under  exist- 
ing laws,  of  any  person  or  persons  who  shall  in  any  way  hinder 
another  who  desires  to  labor  for  his  employer  from  so  doing.” 

The  members  of  trades  unions  in  this  country  are  said  now  to 
number  altogether  about  one  and  one-half  millions.  The  growth 
in  membership  and  strength  has  been  especially  rapid  during  the  last 
four  years,  a fact  mainly  due  to  the  opportunity  offered  for  the  suc- 
cess of  labor  propaganda  by  the  phenomenal  industrial  activity  of  our 
country.  Many  of  these  organizations  are  either  independent  or  local. 
Others  have  a parent  organization,  a general  directing  body  over  all 
the  local  organizations,  such  as  the  American  Federation  of  Labor. 
Generally  speaking,  the  fundamental  aim  or  object  of  all  these 
organizations  is  to  obtain  increased  wages  for  a decreased  number  of 
hours  of  work.  Secondarily,  but  scarcely  less  important  in  the  eyes 
of  many  members  of  the  unions,  they  attempt  to  obtain  recognition 
of  the  union  and  the  restriction  of  output. 

The  first  of  these  aims  is  legitimate  enough,  and  the  success 
which  has  crowned  the  efforts  of  certain  unions,  particularly  of 
recent  years  in  this  regard,  is  their  chief  claim  to  consideration  from 
the  wage-earner.  For  example,  consider  the  situation  in  two  of  our 
trades  to-day — the  bricklayers  and  the  blacksmiths.  The  second 
requires  a higher  order  of  intelligence  and  skill,  it  requires  continual 
learning  and  a much  longer  period  before  the  attainment  of  ordinary 
proficiency,  it  is  much  harder  work  and  involves  greater  danger  of 
injury,  the  conditions  under  which  the  work  is  done  are  more  dis- 
agreeable. The  bricklayer  will  say  that  he  can  work  only  in  fair 
weather,  and  that  his  wages  must,  therefore,  be  high  enough  to 
compensate  him  for  the  time  when  he  is  idle.  This  is  no  longer  true, 
for  cement  is  used  in  place  of  common  mortar,  so  that  operations  can 
be  carried  on  in  freezing  weather.  The  men  are  frequently  protected 
by  temporary  enclosures,  lighted  and  even  heated.  Yet  bricklayers 
are  getting  five  dollars  for  eight  hours’  work,  while  blacksmiths  are 
fortunate  if  they  obtain  three  dollars  for  ten  hours’  work.  You  do 
not  find  this  difference  between  members  of  varying  efficiency  in  one 
trade,  for  the  union  specifies  that  all  shall  receive  the  same  rate,  but 
the  difference  is  between  the  two  trades  and  greatly  in  favor  of  that 
of  lower  order.  This  is  a most  forceful  illustration  of  the  advantage 
to  labor  of  a strong  organization  and  of  collective  bargaining. 

The  wage  per  hour  may  fluctuate  to  a certain  extent  with  the 

[428] 


T radcs  Unionism 


J7 


price  of  food  and  the  general  condition  of  the  country,  but  a reduc- 
tion of  the  working  hours  once  obtained  remains.  The  reduction 
has  been  made  within  a few  decades  from  fifteen  to  twelve,  from 
twelve  to  ten,  and  now  all  government  and  much  private  work  is 
on  an  eight-hour  schedule.  It  is  probable,  and  seems  to  be  the  ten- 
dency, that  this  will  become  general  wherever  practical  to  complete 
the  day’s  work  in  such  a time.  For  this  reduction  of  hours  the 
working  classes  have  to  thank  the  trades  unions. 

Recognition  is  not  always  insisted  upon  by  the  union.  Where 
it  is  granted  it  means  that  the  employer  agrees  to  employ  and  dis- 
charge union  men  through  the  union  officials,  to  grade  his  employees 
(and  incidentally  their  wages)  according  to  the  standards  of  the 
union,  to  subject  his  shop  discipline  to  union  rules,  frequently  to  buy 
only  unionized  supplies  for  his  business,  and  to  employ  only  mem- 
bers of  the  union.  Sooner  or  later  these  conditions  and  their  logical 
extensions  become  intolerable,  they  sometimes  even  conflict  with  the 
labor  laws,  and  a rupture  follows. 

Restriction  of  production  is  not  generally  admitted  by  labor 
leaders  to  be  one  of  the  tenets  of  their  policy.  Conclusive  evidence, 
however,  can  be  furnished  to  prove  that  the  so-called  “ca’  canny” 
(go  easy)  policy  of  British  trade  unions  is  rapidly  gaining  a foothold 
in  this  country,  and,  unless  checked,  will  work  dire  mischief  for  the 
entire  land.  No  more  demoralizing  policy  for  the  workers  can  be  con- 
ceived than  this.  There  is  no  greater  fallacy  than  the  belief  that  there 
is  a fixed  or  limited  amount  of  work  to  be  done  in  the  world,  the 
husbanding  of  which  will  redound  to  the  ultimate  benefit  of  the 
wage-earner.  The  recent  decline  of  the  British  manufactures  may 
be  attributed  more  largely  to  this  mistaken  policy  than  to  any 
other  single  cause.  A writer  in  the  London  Times  has  shown, 
in  a series  of  articles  on  “The  Crisis  in  British  Industries,”  that 
the  “ca’  canny”  system  has  reduced  the  product  of  an  English 
trade  unionist’s  work  to  a point  where  his  labor,  once  the  most 
profitable  in  the  world,  now  frequently  nets  a loss  to  his  employer. 
It  is  stated  that  thirty  years  ago  an  English  bricklayer  would 
lay  1,200  bricks  in  a day,  now  the  maximum  allowed  by  the  union 
is  four  hundred.  Nor  is  this  the  only  means  adopted  to  efifect  limita- 
tion, for  the  British  unions  have  refused  to  allow  the  introduction  of 
improved  machinery,  they  have  adopted  stringent  rules  limiting  the 
hours  and  rate  of  its  operation,  and,  when  these  measures  were  found 

[429] 


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not  to  be  efficacious,  have  deliberately  planned  its  injury  or  destruc- 
tion. In  some  shops,  after  the  failure  of  the  above  means,  the  disap- 
pointed men  have  committed  serious  crimes  by  malicious  and  persist- 
ent interference  with  the  operation  through  the  changing  of  feeds 
and  speeds,  “racking”  by  feckless  running,  “forgetting”  to  lubricate, 
or  the  breaking  and  “losing”  of  small  parts.  The  defence  of  the  limi- 
tation of  output  on  the  part  of  certain  unions  is  that  without  it  the 
normally  average  worker  would  be  forced  to  come  up  to  the  standard 
set  by  the  strongest  and  most  skillful,  and  in  this  way  become  worn 
out  and  useless  before  his  time.  If  this  were  proven  true,  or  even, 
well  substantiated,  it  would  merit  attention  and  become  a proper 
subject  of  governmental  control.  The  charge,  however,  is  baseless. 
No  employer  expects  all  men  to  be  equally  industrious  and  skillful, 
nor  to  drive  his  men  beyond  their  strength,  but  he  naturally  desires  to 
buy  labor  just  as  he  purchases  any  other  commodity,  that  is,  accord- 
ing to  quality  and  quantity ; he  does  not  wish  to  pay  the  same  rate 
of  wage  to  the  least  efficient  man  as  he  does  to  the  most  efficient. 
Yet  this  is,  in  effect,  what  the  trade  union  demands. 

Piece-work  and  premium  systems  have  been  devised  for  the  pur- 
pose of  stimulating  industry  and  rewarding  efficiency.  The  premium 
system  is  regarded  by  many  students  of  wage  adjustment  as  the  most 
equitable  plan  of  wage  payment  that  has  yet  been  devised.  Assuming 
that  a fair  base  price  for  a given  job  has  been  fixed  upon  in  advance 
as  satisfactory  to  employer  and  employee  (being  adapted  to  the 
earning  capacity  of  the  average  worker),  to  which  is  added  a pre- 
mium for  an  increase  of  output  by  the  more  diligent  and  skillful 
operatives,  we  have  a system  which  pays  a fair  “living”  wage  to  the 
average  worker  and  then  encourages  him  by  a substantial  induce- 
ment to  excel.  This  cannot  be  contorted  into  a method  of  forcing 
the  men  into  activity  beyond  their  strength.  It  would  seem  that  if 
the  unions  desired  to  elevate  the  standard  of  efficiency  of  their  men 
the  universal  establishment  of  such  a system  would  be  their  first 
demand  instead  of  an  object  of  their  abhorrence. 

Recently  a strike  occurred  in  a machine  shop,  against  the  wishes 
of  the  employees,  by  the  order  of  the  union  to  which  they  belonged,  ter 
compel  the  company  to  abolish  the  premium  system,  and,  in  this  way, 
to  reduce  the  earnings  of  their  men.  The  premium  system  had  been 
in  use  for  two  vears  where  it  was  giving  satisfaction  to  the  company 
and  the  men,  and  it  was  reported  that  the  official  representatives  of 

[430] 


Trades  Unionism 


19 


the  union  refused  to  submit  the  matters  in  dispute  to  a disinterested 
board  of  conciliation.  Labor  unions  which  embrace  this  policy  of 
restriction  of  output  as  a means  of  maintaining  the  status  of  their 
trade  should  reflect  that  it  offers  the  very  greatest  stimulus  to  the 
invention  and  perfection  of  automatic  machines  which  dispense  more 
and  more  with  skilled  hand-workers  and  skilled  attendants.  In  the 
foundry,  for  example,  molding  machines  operated  by.  unskilled 
laborers  or  even  boys  are  fast  displacing  skilled  molders  in  the 
lighter  classes  of  work  and  their  scope  is  being  continually  enlarged. 

As  to  the  means  of  realizing  the  aims  of  trades  unions,  the  first 
is  agitation  followed  by  a presentation  to  the  employers  of  the 
case  of  the  employees.  Sometimes  an  attempt  is  made  to  argue  the 
case  to  a settlement,  more  generally  an  ultimatum  is  delivered — 
the  alternative  of  compliance  is  a general  tie  up  of  the  shops  by 
a strike  of  the  union  labor.  If  this  is  not  effective  because  of  the 
ability  to  operate  without  union  labor,  every  pressure  of  persuasion, 
ostracism,  diversion  and  opprobrium,  and  finally  violent  force  is 
brought  to  bear  upon  those  willing  to  work  for  the  firm  under  estab- 
lished conditions.  This  is  brought  to  bear  not  only  upon  the  worker, 
but  also  upon  his  wife  and  children  and  sometimes  more  distant 
relatives,  and  by  not  only  the  strikers  but  their  sympathizers  and 
those  dependent  upon  or  at  the  mercy  of  the  strikers,  such  as 
grocerymen  and  other  suppliers.  Every  effort  is  made  to  interfere 
with  and  cripple  the  employer,  i.  e.,  the  “boycott’’  against  him  and 
against  all  who  support  him ; or  the  “sympathetic  strike”  by  the 
members  of  other  unions  is  resorted  to  in  order  to  tie  up  other  busi- 
ness houses  and  thus  bring  outside  commercial  pressure  to  bear  upon 
the  resisting  employer.  These  are  crude,  back-handed  weapons 
which  have  rarely  proven  effective. 

The  control  over  the  unions,  or  the  leadership  of  them,  is  in 
the  hands  of  men  elected  from  amongst  their  own  ranks  and  often 
selected  without  regard  to  the  possession  of  those  qualities  which  are 
generally  considered  necessary  to  a wise  counsellor  or  an  able  leader. 
These  men  are  usually  poor  workers,  or  at  best  mediocre.  They 
are  selected  because  they  have  the  persuasive  or  the  blatant  tongue. 
In  an  excited  meeting,  by  the  exhibition  of  a spirit  of  bravado,  they 
carry  their  fellows  awav  from  the  conservative  and  moderate  and 
obtain  the  leadership.  They  now  consider  themselves  above  their 
trade  and  either  leave  it  or  become  so  intolerable  in  their  attitude 

[431] 


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as  to  compel  their  discharge.  The  ordinary  routine  of  their  new 
position,  the  desire  to  convert  all  the  non-union  men  about  them  or 
some  other  cause  may  lead  to  such  neglect  of  work  that  the  employer 
finds  it  necessary  to  be  rid  of  them.  They  and  their  supporters  con- 
sider that  it  is  a blow  aimed  at  the  union.  The  result  is  frequently 
bad  blood.  At  any  rate,  they  will  now  be  supported  on  a salary  from 
the  union,  and  to  keep  the  men  interested  they  must  be  active.  This 
activity  usually  takes  the  form  of  agitation  for  a strike  against  this 
or  that  “ wrong.”  The  union  so  led  is  generally  largely  made  up  of 
men  of  inferior  skill,  and  it  is  for  this  reason  that  they  do  not  suc- 
ceed well,  are  poorer  paid  than  some  others,  have  to  be  followed  up 
in  their  work  by  the  foreman  and  are  generally  fruit  for  discontent. 
Such  a union  *is  always  having  trouble.  In  sharp  contrast  with  it  is 
such  a union  as  the  Brotherhood  of  Locomotive  Engineers,  the 
architype  of  all  that  is  best  in  unionism  and  an  example  of  what 
intelligent  and  careful  leadership  may  do  for  organized  labor.  Its 
strifes  have  been  few,  and  none  at  all  in  recent  years ; it  is  rich,  it  is 
powerful,  it  is  recognized  as  a power  for  good.  It  strives  honestly  to 
raise  the  standard  of  efficiency  of  its  men,  and  the  card  of  the  brother- 
hood is  regarded  as  a strong  recommendation  of  efficiency  and  good 
character  by  railroad  superintendents  and  master  mechanics  the 
country  oyer. 

Radical  leadership  has  made  most  of  our  unions  unsuccessful 
and  given  them  a name  for  bad  faith  and  for  mean  and  petty  action. 
There  is  reason  for  hope  in  the  improvement  during  the  past  few 
years  in  the  leadership  of  some  that  gradually  all  will  select  either 
their  own  most  fit  representatives  or  that  labor  leaders  will  be  trained 
to  their  calling  as  are  lawyers  or  g-enerals.  When  they  do  profit  by 
the  example  of  the  most  successful,  much  of  the  present  prejudice 
against  them  will  be  forgotten,  and  a man  with  the  union  card  will 
have  a certificate  of  efficiency  and  good  character,  for  none  other  will 
be  eligible.  When  these  are  the  effects  of  unionism  upon  labor,  the 
employer  will  welcome  and  encourage  the  movement  as  one  of  the 
modern  agencies  for  doing  the  world’s  work  expeditiously  and 
economically. 

Alexander  E.  Outerbridge,  Jr. 

Philadelphia. 


THE  VALUE  OF  AUDITING  TO  THE  BUSINESS  MAN 


In  the  discussion  of  this  subject  three  questions  of  a preliminary 
character  require  attention : 

1.  What  is  the  distinction  between  the  bookkeeper  and  the 
auditor  ? 

2.  Of  what  does  an  audit  consist  ? 

3.  What  special  knowledge  is  possessed  by  the  bookkeeper 
which  the  auditor  does  not  have? 

There  are  three  distinct  spheres  of  action  in  dealing  with 
accounts : ( 1 ) The  accountant,  whose  work  is  constructive,  is  the 

arbiter  of  methods,  who  regulates  how  the  work  shall  be  done. 
(2)  The  bookkeeper,  who  follows  along  the  lines  laid  down  for 
him,  and  (3)  the  auditor,  who  reviews  the  work,  sees  that  it  is  prop- 
erly carried  out  and  certifies  to  the  correctness  of  the  results  obtained. 
These  three  operations  can  be  the  work  of  one  individual,  and, 
though  more  commonly  the  bookkeeper  occupies  a subordinate  posi- 
tion, with,  in  some  cases,  a professional  auditor  to  supervise  him, 
the  number  of  public  accountants  who  are  taking  positions,  where 
they  really  act  as  head  bookkeepers,  especially  with  the  larger  cor- 
porations, is  constantly  increasing*.  Such  men  seldom  do  any  actual 
bookkeeping  work,  and  often  combine  the  duties  of  accountant, 
bookkeeper  and  auditor.  In  other  words,  old  distinctions  are  disap- 
pearing, as  the  science  of  bookkeeping  increases  in  difficulty  and 
efficiency.  As  a general  proposition,  however,  the  knowledge  of 
bookkeeping,  which  is  the  average  bookkeeper’s  only  equipment,  is 
but  the  A B C of  the  accountant  and  auditor,  and  the  latter  by 
training  and  experience  must  obtain  a wider  and  more  general  edu- 
cation than  the  former  has  opportunity  or  inducement  to  attain.  It 
is  most  necessary  for  the  auditor  to  instruct  himself  in  finance  and 
law.  He  need  not  know  as  much  of  these  subjects  as  the  banker 
or  lawyer,  but  he  must  have  the  faculty  which  they  need  not  possess 
of  interpreting  what  they  have  in  mind  into  proper  form  in  his 
accounts.  With  the  growing  complexity  of  the  organization  of  large 
corporations,  this  knowledge  increases  both  in  value  and  difficulty. 

[433] 


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The  Annals  of  the  American  Academy 


and  the  accountant  in  active  practice  does  not  know  from  day  to  day 
what  novel  problem  he  may  be  called  on  to  solve. 

Leaving  out  of  consideration,  however,  the  more  complex  ques- 
tions which  may  confront' him,  the  accountant  or  auditor  is  constantly 
called  on  to  undertake  work  in  businesses  with  which  he  has  had 
little  or  no  experience.  From  this  fact  arises  frequent  skepticism  as 
to  the  value  of  the  public  accountant’s  services.  Business  men  who 
would  not  hesitate  to  consult  their  lawyer  on  any  question  of  law, 
often  appear  unable  to  understand  that  the  public  accountant  stands 
on  precisely  the  same  ground  as  the  lawyer,  and  consequently  will 
frequently  trust  to  the  more  limited  judgment  of  a bookkeeper,  who 
has  had  experience  in  a similar  line  of  business.  No  doubt  this 
hesitation  generally  arises  from  the  fact  that  accountancy  in  its 
higher  grades  is  a profession  that  has  only  recently  come  into  notice 
in  this  country,  but  it  is  also  due  to  the  lack  of  a proper  appreciation 
of  the  scope  of  its  utility. 

The  science  of  double-entry  accounts  rests  on  the  simplest  of 
axioms,  and  that  is  every  debit  must  have  its  corresponding  credit. 
In  that  one  sentence  is  summed  up  all  that  it  is  necessary  for  the 
bookkeeper  to  know.  The  carrying  out  of  this  simple  rule,  however, 
leads  to  almost  unlimited  variations,  which  may  be  highly  com- 
plex in  character,  and  it  is  on  the  intelligent  handling  of  the  figures 
taken  from  a set  of  double-entry  books  that  the  value  of  a state- 
ment of  the  accounts  depends.  In  doing  his  work,  the  accountant 
is  guided  by  certain  basic  principles,  some  of  which  are  com- 
mon to  all  classes,  and  others  to  certain  sections,  of  the  whole 
field  of  accounts.  Certain  conditions  which  apply  to  one  business 
are  common  to  others,  which  may  be  entirely  dissimilar  in  many  of 
their  details,  and  it  is  on  the  power  to  adjust  his  experience  to  fit 
unfamiliar  conditions  that  the  accountant  must  mainly  depend.  Under 
such  circumstances,  the  bookkeeper’s  acquaintance  with  details  may 
be  considerably  more  extensive  than  the  auditor’s,  and  it  is  at 
times  well  for  the  latter  that  this  is  the  case.  The  value  of 
his  services  arises  from  the  fact  that  he  brings  to  his  work  a knowl- 
edge specialized  to  an  extent  which  the  bookkeeper  seldom  has  oppor- 
tunity to  acquire.  It  is  hardly  too  much  to  say  that  the  accountant 
need  not  be  a bookkeeper  at  all,  but  this  is  as  true  as  is  the  fact  that 
the  most  brilliant  lawyer  may  not  be  able  to  draw  up  an  affidavit  as 
well  as  his  clerk  can. 


[434] 


The  Value  of  Auditing  to  the  Business  Man 


23 


To  give  a concise  definition  of  an  audit  is  not  an  easy  matter. 
Its  variations  are  almost  unlimited,  and  its  exact  significance  depends 
on  the  determination  of  the  auditor’s  responsibilities.  The  actual 
details  of  an  audit  and  the  responsibilities  depend  on  the  raison  d'etre 
of  the  audit  itself.  It  may  consist  simply  of  the  checking  of  a well 
designed  set  of  accounts  in  a business  having  no  complex  features ; 
in  other  cases,  the  exact  reverse  may  obtain.  Or,  the  auditor’s  ser- 
vices may  be  required  on  an  examination  for  the  purpose  of  the 
purchase,  sale,  or  incorporation  of  a business,  or  an  investigation 
occasioned  by  fraud,  diminishing  profits,  threatened  bankruptcy,  or 
a variety  of  other  causes.  As  a rule,  however,  as  already  shown,  the 
term  audit  is  generally  used  to  cover  a simple  checking  of  accounts 
to  prove  their  correctness,  and  a distinction  is  made  between  such 
work  and  investigations  or  examinations  for  any  purpose.  All  these 
classes,  however,  come  within  the  auditor’s  duties.  The  object  in 
every  case  is  to  certify  to  the  correctness  or  falsity  of  the  figures  as 
shown  on  the  books,  but  this  cannot  be  given  as  a definition  of  the 
word  audit. 

Some  qualifications  on  this  are  necessary.  For  example,  a set  of 
figures  might  be  absolutely  correct,  as  shown  by  the  books,  but  in  the 
case  of  an  incorporated  company,  the  figures  might  contain  items 
which  should  never  have  appeared.  A case  within  the  writer’s  experi- 
ence illustrates  this  fact.  In  the  course  of  an  audit,  it  was  discovered 
that  not  only  had  none  of  the  dividends  paid  been  legally  declared, 
but  that  the  company  had  never  legally  come  into  existence,  and  even 
if  it  had,  at  the  time  of  the  audit,  it  had  no  lawfully  constituted 
officers.  This  condition,  however,  had  not  prevented  the  concern 
from  earning  and  paying  dividends  of  2 per  cent  a month  for  a 
matter  of  nearly  three  years.  Fortunately,  the  corporation  was  a 
close  one,  all  the  shareholders  being  near  relatives,  so  that  it  was 
possible  to  rectify  the  mistakes  without  much  trouble. 

The  errors  which  it  is  the  auditor’s  business  to  detect  may  be 
classified  as  follows:  (1)  Errors  of  principle,  (2)  errors  of  omis- 

sion, (3)  errors  of  fraud.  Examples  which  may  be  suggested  by 
these  errors  are : 

a.  The  inclusion  in  the  revenue  accounts  of  profits  which  are 
not  available  for  distribution ; 

b.  The  failure  to  make  provision  for  invisible  wastes  or  losses ; 

c.  The  omissions  of  liabilities  in  drawing  up  a balance  sheet. 

[435] 


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The  first  is  an  example  of  an  error  of  principle;  the  other  two' 
are  errors  of  both  principle  and  omission,  and  often  all  three  are 
errors  prompted  by  the  desire  to  deceive,  even  if  they  are  not  founded 
on  actual  fraud. 

It  is  an  axiom  of  accounts  that  a profit  is  not  earned  until  its 
receipt  is  actual  or  is  reasonably  assured.  An  illustration  of  this  is 
the  usual  practice  of  treating  interest  and  dividends  receivable.  It 
is  customary  to  include  interest  accrued  on  first-class  bonds  in  the 
accounts  as  the  amount  is  certain  and  its  receipt  is  reasonably  sure. 
Dividends  on  stocks,  on  the  other  hand,  are  not  credited  up  until 
they  are  declared,  for  their  amount  is  uncertain,  and  there  is  no 
assurance  that  anything  will  be  distributed. 

The  most  common  method  of  bringing  unavailable  profits  into 
the  revenue  accounts  is  to  increase  the  cost  price  of  inventory  items, 
or  to  raise  the  book  value  of  real  estate,  securities  owned,  or  some 
similar  asset.  In  each  of  these  cases  the  increase  in  value  may 
be  actual,  and  often  the  action  may  be  prompted  by  a perfectly  inno- 
cent desire  to  make  a good  showing.  The  test  of  the  legitimacy  of 
such  profits  is,  can  they  be  distributed  if  brought  into  account? 
And,  in  each  of  the  cases  in  point,  this  can  be  made  possible  only  by 
the  sale  of  property  in  question.  Where  inventory  items  are  con- 
cerned, this  is  likely  to  happen  in  the  near  future,  and  so  the  bringing 
of  such  profits  into  the  account  may  result  only  in  the  anticipation 
of  a reasonably  certain  gain.  Some  years  ago,  in  the  English  courts, 
the  present  Lord  Chief  Justice,  then  Sir  Richard  Webster,  advanced 
the  ingenious  argument  that  such  profits  were  not  profits  of  selling, 
but  profits  of  buying,  and  therefore  it  was  perfectly  legitimate  to 
take  all  inventory  items  at  market  instead  of  at  cost  price.  The 
objection  to  such  a claim  is  that  there  is  no  certainty  that  the  market 
may  not  have  declined,  even  to  a point  below  the  purchase  price, 
by  the  time  a sale  is  consummated. 

The  increase  in  the  book  value  of  real  estate,  securities  or 
other  similar  assets,  stands  on  an  entirely  distinct  basis.  Such 
properties  are,  in  the  case  of  any  ordinary  business,  usually  acquired 
because  they  are  necessary  to  its  proper  conduct,  and  their  sale 
would  mean  the  loss  of  certain  advantages,  if  it  did  not  result  in 
the  extinction  of  the  business  itself.  There  is,  therefore,  no  possi- 
bility of  realizing  the  necessary  cash  on  this  class  of  profits,  and 
their  distribution  can  be  made  only  at  the  expense  of  the  working 

[436] 


The  Value  of  Auditing  to  the  Business  Alan  25 

capital.  In  other  words,  any  dividends  from  such  a source  can  be 
paid  only  out  of  funds  which  are  required  for  other  purposes.  In 
dealing  with  this  subject,  only  the  payment  of  cash  dividends  has 
been  considered,  the  question  of  stock  dividends  being  ignored. 
If,  however,  an  increase  in  the  stock,  to  offset  the  increased  value 
in  assets,  is  justifiable,  and  such  is  often  the  case,  the  profit  so 
brought  into  account  should  not  be  merged  with  the  ordinary  revenue, 
but  should  be  stated  separately  and  distinctly. 

The  most  common  and  effective  method  of  detecting  such  errors, 
as  are  outlined  above,  is  to  draw  up  comparative  statements  of 
accounts,  at  the  beginning  of  the  period  under  review,  placing  in  a 
parallel  column  the  figures  at  the  end  of  the  period  and  setting  up  and 
examining  the  various  changes.  By  this  means  a comprehensive 
view  of  the  course  of  the  business  is  obtainable  and  attention  is 
drawn  to  any  suspicious  looking  items.  A heavy  decrease  in  the 
current  assets  which  was  not  neutralized  by  a similar  condition  in  the 
current  liabilities,  would  challenge  inquiry,  especially  if  it  was 
accomplished  by  an  increase  in  plant  or  some  other  fixed  asset.  By 
treating  the  inventory  in  a similar  manner,  large  fluctuations  would 
stand  out  prominently  and  deliberate  padding,  if  extensive  enough 
to  be  of  consequence,  should  be  detected. 

Other  methods  of  padding  the  revenue  accounts  are  the  taking 
in,  as  finished,  work  on  which  large  expenditures  are  still  required, 
or  the  inclusion  of  the  total  amount  of  a sale  of  a lease,  or  more 
than  the  proper  proportion  of  a contract  having  a number  of  years 
to  run.  The  writer,  a few  years  ago,  encountered  instances  of  both 
of  these  methods.  In  the  first,  a company  had  contracted  to  per- 
form certain  services  for  a term  of  ten  years ; they  had  been  paid 
the  full  amount,  but  had  done  only  one  year’s  work.  This  fact,  how- 
ever, did  not  prevent  them  from  taking  the  entire  sum  they  had 
received  into  their  profits.  Exactly  similar  cases  are  not  com- 
mon, for  it  is  unusual  for  such  lump  payments  to  be  made,  but 
cases  where  profits  on  contracts  have  been  taken  in  excess  of  the 
proportion  the  finished  work  bears  to  the  whole,  are  not  at  all  unusual 
and  are  oftentimes  very  hard  to  detect.  In  the  other  case  men- 
tioned, a company  had  leased  a part  of  their  property  for  a term  of 
years,  the  rental  to  be  paid  annually.  An  examination  of  their 
profit  and  loss  account  showed  that  they  had  included  the  whole 
amount,  such  a matter  as  deferred  payments  apparently  being  con- 

[437] 


26  The  Annals  of  the  American  Academy 

sidered  of  no  consequence.  This  again  was  unusual,  but  it  fur- 
nishes an  illustration  of  the  extraordinary  efforts  to  make  a good 
showing  which  may  be  met  with. 

The  failure  to  make  provision  for  invisible  wastes,  or  losses, 
generally  takes  the  form  of  the  omission  of  any  provision  for 
depreciation,  or  bad  debts.  It  is  as  sensible  to  omit  part  of  the 
cost  of  the  raw  material  in  a manufactured  article  as  to  fail  to 
take  account  of  that  part  of  a machine’s  life  which  is  consumed  in 
the  making.  There  lately  appeared,  in  a much-advertised  guide  for 
accounting  students,  the  statement  that  there  was  no  need  to  charge 
off  any  depreciation  as  long  as  a machine  was  doing  as  good  work 
as  was  possible,  and  that  it  was  by  no  means  uncommon  in  mining 
districts  to  find  engines  which  had  been  in  use  for  fifty  years  and 
were  just  as  good  as  ever.  Every  accountant  comes  across  cases  of 
unusual  survival  on  the  part  of  machinery.  The  writer  once  met 
with  a printing  press  of  this  description.  Its  owner  cited  it 

as  a proof  of  the  folly  of  making  any  allowance  for  depreciation. 
He  claimed,  with  what  truth  cannot  be  told,  that  it  was  forty  years 
■old,  it  certainly  looked  it.  He  betrayed  his  case,  however,  by  stating 
that  it  was  one  of  an  original  plant  of  ten  presses  installed  when 
the  business  started.  Its  companions  had  long  gone  to  the  scrap 
heap,  and  the  survivor  was,  by  its  owner’s  confession,  only  capable 
of  the  roughest  kind  of  work.  But  he  triumphantly  claimed  it  would 
do  that  as  well  as  a brand  new  press. 

The  man  who  will  not  allow  for  depreciation  will  be  always 
with  us,  and  so  unfortunately  will  the  man  who  insists  on  writing 
off  too  much.  The  latter  is  really  far  more  difficult  to  deal  with, 
as  his  plea  is  that  he  does  not  want  to  be  fooled  by  an  overesti- 
mate of  his  assets,  and  wants  to  have  something  in  hand  for  hard 
times.  It  is  certainly  exasperating  for  the  auditor  who  wishes  to 
do  more  than  show  the  bare  amount  of  the  profits,  to  be  confronted 
with  a plant  account  which  has  been  written  down  to  one  dollar  or 
some  inadequate  figure.  The  value  of  a comparison  between  the 
profits  of  different  periods  is,  of  course,  destroyed,  and  very  often 
no  possibility  of  estimating  the  future  course  of  the  business  remains. 

A favorite  question  with  the  examiners  for  accountancy  degrees 
is : How  can  the  auditor  be  certain  that  all  the  liabilities  are  dis- 
closed on  the  books?  An  auditor  cannot  be  absolutely  certain  on 
this  point.  There  are,  of  course,  certain  features  to  look  out  for  and 

[438] 


The  Value  of  Auditing  to  the  Business  Man  27 

certain  precautions  which  can  be  taken.  Accrued  charges  of  any 
kind,  naturally  occur  as  the  most  common  errors  of  omission,  and 
the  obtaining  of  statements  from  all  the  creditors  on  the  books  is  a 
precaution  sometimes  resorted  to,  but  when  every  care  along  such 
lines  has  been  taken,  there  still  remains  a large  opportunity  for 
failure  to  get  all  liabilities  on  to  the  balance  sheet.  An  examina- 
tion of  the  inventory  and  of  the  invoices  passed  directly  after  the 
close  of  the  fiscal  period,  will  often  bring  to  light  many  omis- 
sions but  the  deliberate  holding  back  of  large  expense  items,  for 
example,  a heavy  lawyer’s  bill,  or  a judgment  for  damages,  may 
in  the  absence  of  any  evidence  of  its  existence,  foil  the  most  careful 
auditor. 

Deliberate  errors  of  fraud  on  a large  scale  are  fortunately  rare, 
when  the  volume  of  business  is  taken  into  account,  and  when  they 
occur  are  more  generally  found  outside  of  what  can  strictly  be 
described  as  bookkeeping.  In  the  small,  much-advertised  companies 
which  are  constantly  being  ground  out,  to  catch  the  unwary,  however, 
errors  of  accounting  which  it  is  charitable  to  suppose  are  made  in 
ignorance  continually  occur.  The  most  common  of  these  is  the  cus- 
tom of  counting  as  profits  the  proceeds  of  the  shares  sold  to  the 
public.  The  method  used  is  as  follows : A property  of  the  agreed 
value,  say  $100,000,  is  purchased  from  the  vendor  for  $1,000,000. 
The  vendor  then  returns  $900,000  in  shares  to  the  treasury  of  the 
company.  In  this  way  the  shares  have  been  issued  fully  paid  and 
non-assessable,  and  the  property  stands  in  the  books  at  $1,000,000. 
The  public  are  then  offered  shares  worth  $1  fully  paid,  etc.,  etc.,  for 
the  trifling  sum  of  five  cents, — all  subscriptions  received  are  reckoned 
as  profits,  and  if  the  demand  is  brisk,  the  price  is  rapidly  advanced 
and  larger  and  larger  dividends  declared.  This  continues  until  the 
shareholders  discover  that  they  have  been  paying  office  rent,  salaries, 
and  advertising  for  the  privilege  of  receiving  as  dividends  a moiety 
of  the  capital  which  they  have  invested.  If  they  get  off  at  that,  they 
are  fortunate,  for  many  such  schemes  have  little  to  distinguish  them 
from  the  “get-rich-quick”  frauds,  except  greater  difficulty  in  bring- 
ing their  promoters  to  book. 

While  frauds  on  a large  scale  are  comparatively  rare,  embezzle- 
ment by  employees,  which  are  covered  up  by  falsification  of  the 
books,  are  unfortunately  only  too  common,  and  the  exposure  of  the 
culprits  forms  one  of  the  most  disagreeable  of  the  accountant’s 

[439] 


28 


The  Annals  of  the  American  Academy 


duties.  No  rule  can  be  laid  down  for  the  detection  of  errors  of  this- 
kind,  except  the  exercise  of  extreme  care.  The  greatest  difficulty 
often  is,  to  catch  the  end  of  the  thread,  and  to  grasp  the  methods  by 
which  the  embezzlement  is  concealed.  The  writer  once  had  a case, 
where  the  first  clue  he  obtained  that  anything  was  wrong,  was  the 
fact  that  a cheque  for  the  petty  sum  of  $1.65  was  offered  as  a receipt. 
It  can  only  be  supposed  that  this  was  a slip  due  to  the  necessity  of 
producing  a balance  in  a hurry,  for  the  culprit  was  an  expert  book- 
keeper, but  it  was  one  of  the  slips  that  almost  invariably  occur  in 
such  cases. 

We  have  finally  to  inquire : How  are  certain  leading  accounts 
usually  audited?  The  following  have  been  selected  for  study:  (a) 
Credit  sales;  (b)  accounts  and  bills  receivable;  ( c ) depreciation;. 
(d)  surplus. 

To  make  sure  of  the  correctness  of  the  sales  as  stated  in  the 
books,  is  only  possible  in  an  audit  of  a small  business,  for  it  necessi- 
tates the  checking  of  every  shipment  or  delivery  made.  This  is,  of 
course,  impossible  in  the  case  of  a large  concern,  and  if  the  accounts 
will  stand  a certain  amount  of  testing,  they  are  generally  assumed 
by  the  auditor  to  be  correct.  How  these  tests  are  to  be  applied  and 
the  extent  of  their  probable  accuracy,  depends  largely  upon  the 
comparative  perfection  of  the  accounts  to  which  they  are  applied. 
Where  a continuous  inventory  is  kept,  the  check  can  be  made  much 
more  efficient  than  where  this  is  not  the  case.  Perhaps  the  easiest 
business  to  check  up  closely  in. this  respect  is  in  the  jewelry  trade, 
for  although  the  value  of  the  gems  contained  in  the  inventory  can 
only  be  appraised  by  experts,  at  least  the  more  important  items 
appear  in  the  books  under  certain  well-defined  numbers,  and  it  is 
a comparatively  easy  matter  to  trace  them  if  necessary.  Each  class 
of  stone  has  its  distinct  number ; diamonds  or  packets  of  diamonds  in 
the  case  of  small  stones  may  be  numbered  from  one  to  five  hundred ; 
pearls  from  five  hundred  to  one  thousand  and  so  on,  so  that  with 
reasonable  care  every  sale  can  be  verified.  In  the  general  run  of 
businesses,  however,  no  such  thorough  check  is  possible,  and  the 
auditor  must  depend  on  comparison  between  periods,  and  on  the 
exercise  of  ceaseless  vigilance  to  save  him  from  a false  step.  Details 
which  demand  especial  attention,  are  the  charging  up  of  packages 
which  will  be  allowed  for  on  return,  and  the  provision  for  returns 
and  allowances. 


[440] 


The  Value  of  Auditing  to  the  Business  Man 


29 


It  should  be  possible,  as  a rule,  to  make  sure  of  the  value 
of  bills  receivable,  as  they  are  limited  in  number.  They  should 
be  listed,  those  which  are  overdue  noted,  and  a lookout  kept  for 
long-continued  renewals  and  accommodation  paper  which  may  be 
a liability  instead  of  an  asset.  Accounts  receivable,  on  the  other 
hand,  are  often  so  numerous  that  their  close  scrutiny  is  impossible. 
Where  this  is  the  case,  a “controlling”  account  is  generally  kept. 
The  total  of  this  account  should  be  proved  with  the  summary  of 
the  debtors’  ledgers,  and  the  provision  of  an  adequate  reserve  for 
bad  and  doubtful  debts  and  returns  and  allowances  should  be  insisted 
on.  Certain  accounts  taken  at  haphazard  should  be  checked  and  any 
unusual  features  noted.  It  is  impossible  to  lay  down  any  law  as,  to 
the  maximum  period  of  credit  that  should  be  allowed  before  an 
account  is  considered  doubtful,  for  a great  deal  depends  on  the 
peculiarities  of  the  trade  under  review.  The  indiscriminate  charging 
off  accounts  receivable  is,  however,  to  be  deprecated  as  long  as  a 
reserve  proportionate  to  the  average  loss  in  prior  years  is  set  up. 
As  a matter  of  fact,  the  collection  of  an  account  is  only  impossible : 
( 1 ) When  the  debtor  has  received  his  discharge  from  the  bankruptcy 
courts.  (2)  When  he  is  dead  and  his  estate  has  been  administered. 
(3)  When  a composition  of  the  debt  has  been  accepted.  (4)  When 
he  has  successfully  defended  an  action  brought  against  him  for 
recovery  of  the  debt.  (5)  When  action  is  barred  by  the  Statute  of 
Limitations.  This  does  not  necessarily  mean  that  all  such  accounts 
should  be  left  in  the  active  ledgers,  but  that  the  possibility  of  their 
recovery  should  not  be  lost  sight  of. 

The  question  of  depreciation  is  one  of  the  most  complicated  with 
which  the  auditor  has  to  deal.  As  a matter  of  fact,  the  adequacy  of 
the  allowance  made  under  this  head  is  generally  more  a question 
for  the  engineer  than  for  the  accountant.  Two  considerations  must 
be  recognized  in  dealing  with  the  question  : ( 1 ) The  ultimate  expira- 
tion of  the  useful  life  of  the  object  to  be  depreciated,  which  is 
inevitable;  and  (2)  the  chance,  especially  in  the  case  of  machinery  or 
process  plants,  of  its  continued  use  becoming  unremunerative  on 
account  of  more  economical  methods  being  discovered,  which  is  very 
possible.  As  a rule,  the  auditor  had  better  confine  his  attention  to  an 
endeavor  to  have  some  allowance  for  depreciation  made  in  the 
accounts  and  to  seeing  that  such  allowance  is  made  in  a form  which 
is  likely  to  produce  satisfactory  results. 

[441] 


30 


The  Annals  of  the  American  Academy 


The  three  most  usual  methods  of  making  such  an  allowance 
are : ( i)  By  writing  off  a percentage  of  the  cost  each  year.  (2)  By 
writing  off  a percentage  on  the  diminishing  value.  (3)  By  setting 
aside  a sum  which  on  an  annuity  basis  will  return  the  cost  at  the 
expiration  of  the  object’s  probable  life.  It  is  claimed  that  the  last 
of  these  methods  is  the  most  scientific,  but  from  an  accounting  point 
of  view  this  is  open  to  question.  The  value  of  any  set  of  accounts  is 
enhanced  by  the  extent  to  which  they  make  comparisons  between 
different  periods  possible.  It  is  needless  to  point  out  that  as  «a‘  gen- 
eral rule  the  greater  the  age  of  buildings,  machinery,* etc.,  the  greater 
is  the  cost  of  keeping  them  in  repair.  If  it  is  desirable,  therefore,  to- 
determine  the  average  plant  cost  of  an  article  produced  by  any 
machine,  it  is  necessary  to  divide  the  total  original  cost  of  the 
machine,  the  expenditure  on  the  necessary  repairs  during  its  life,  less 
its  residual  or  scrap  value,  by  the  total  output  during  its  period  of 
production.  The  result  will  be  the  average  cost  of  each  unit  manu- 
factured. Such  a calculation  can,  of  course,  only  be  made  after  the 
machine  is  worn  out,  but  the  theory  of  the  question  should  be  borne 
in  mind.  Since  the  necessary  repairs  must  invariably  increase  as 
the  machine’s  period  of  usefulness  expires,  approximately  correct 
results  can  be  obtained  only  by  decreasing  the  charge  for  deprecia- 
tion as  the  cost  of  repairs  increases.  On  this  basis,  therefore,  the 
second  method  mentioned  is  the  more  commendable. 

The  subject  is  far  from  exhausted,  however,  even  when  the 
problems  of  dealing  with  wear  and  tear  are  satisfactorily  settled.  A 
number  of  objects  subject  to  depreciation  remain,  such  as  patent 
rights,  premiums  paid  for  leases,  and  allowances  for  the  exhaustion 
of  mineral-bearing  land. 

As  the  exact  life  of  any  patent  right  is  known,  this  class  would 
appear  to  offer  few  difficulties.  It  must  not  be  overlooked,  however, 
that  the  good  will  created  during  the  protected  term  may  be  con- 
siderable and  may  even  exceed  in  value  the  original  cost  of  the  patent 
itself,  or  that  the  term  of  life  of  a basic  patent  may  be  greatly  pro- 
longed by  patentable  improvements  being  made,  prior  to  its  expira- 
tion. The  term  of  a lease  determines  the  amount  which  must  be 
allowed  for  its  extinction ; and  in  both  these  cases  the  annuity  basis 
for  figuring  depreciation  is  the  most  desirable. 

The  depreciation  of  mineral-bearing  lands  can  be  conveniently 
illustrated  by  coal  mines.  In  this  case,  interest  on  the  investment 

[442] 


The  Value  of  Auditing  to  the  Business  Man 


3i 


should  be  allowed  each  year,  and  an  estimated  provision  per  ton  of 
the  coal  mined  should  be  made  to  offset  cost  of  the  property  by  the 
time  it  is  exhausted,  plus  the  interest  for  the  year  in  which  the  output 
was  made.  Any  residual  value  such  land  may  have  must  also  be 
taken  into  account. 

A surplus  may  be  defined  as  the  excess  value  of  the  assets  over 
the  combined  liabilities  and  capital.  Where  the  accounts  of  an  ordi- 
nary commercial  concern  are  under  consideration,  many  accountants 
prefer  to  call  this  excess  the  balance  of  profit  and  loss  account,  gen- 
eral profit  and  loss  account,  or  some  such  term,  in  order  to  make  a 
distinction  between  the  surplus  of  a bank  or  similar  institution,  and 
that  of  other  businesses.  The  accuracy  of  the  surplus  must,  of 
course,  depend  on  the  accuracy  of  every  other  item  entering  into  the 
balance  sheet.  If  the  balance  sheet  were  an  absolutely  correct  state- 
ment of  conditions  at  all  times,  the  certainty  of  the  surplus  being 
properly  stated  would  be  a simple  matter.  This,  however,  is  only 
the  case  before  the  ordinary  concern  has  done  a stroke  of  business, 
or  when  its  affairs  have  been  finally  liquidated.  Every  balance  sheet 
between  these  periods  is,  to  a greater  or  less  extent,  an  estimate  of  the 
condition  of  the  business.  Consequently,  the  auditing  of  a surplus 
consists  of  carefully  gauging  the  correctness  of  every  other  portion 
of  the  accounts.  Perhaps  as  good  a way  as  possible  of  illustrating 
this,  is  to  take  the  case  of  a business  which  has  set  aside  a certain 
reserve  for  some  purpose,  for  a reserve  and  a surplus  have  much 
in  common.  We  will  suppose  this  reserve  has  been  accumulated  to 
provide  for  new  machinery  when  the  old  is  worn  out,  and  that,  as  an 
extra  precaution,  the  cash  so  set  aside  has  been  withdrawn  and 
invested  outside  the  business.  The  balance  sheet  might  then  appear 
somewhat  like  the  following : 


ASSETS. 

Real  estate,  machinery,  etc.  $1,000,000 
Investments  for  sinking 


fund  purposes  250,000 

Current  assets  and  inven- 
tory   850,000 


LIABILITIES. 

Capital  $1,250,000 

Reserve  for  depreciation 

of  machinery  250.000 

Current  liabilities  500,000 

Surplus  100,000 


$2,100,000  $2,100,000 

A layman  might  well  hold  up  such  a statement  as  a model  of 
conservative  management.  If,  however,  the  auditor  on  examination 
found  the  current  assets  and  inventory  contained  worthless  items 

[443] 


32 


The  Annals  of  the  American  Academy 


amounting  to  $500,000 — of  course,  this  is  stating  an  extreme  case — 
and  an  appraisal  of  the  real  estate,  machinery,  etc.,  showed  its  true 
value  to  be  only  half  what  the  books  stated,  he  would  have  to  recon- 
sider his  opinion  in  the  light  of  such  a statement  as  this. 


ASSETS.  LIABILITIES. 


Real  estate,  machinery,  etc. 

$375,000 

Capital  

....  $1,250,000 

Investments  

250,000 

Current  liabilities  . . . . 

....  500,000 

Current  assets  and  inven- 

tory   

350,000 

Deficit  

775  >000 

$1,750,000 

$1,750,000 

Such  a radical  change — no  greater  than  has  actually  been  proven 
necessary  in  the  cases  of  many  bankrupt  corporations — is  worth  a 
little  consideration.  The  reserve  set  aside  to  provide  for  deprecia- 
tion, its  inadequacy  fully  demonstrated,  disappears,  for  a reserve 
and  a deficit  would  be  indeed  incongruous  neighbors.  The  sinking 
fund  so  conservatively  provided  for  the  purchase  of  new  machinery 
has  sunk  out  of  sight,  and  the  cash  invested  in  its  securities  will 
barely  suffice  to  restore  the  equilibrium  between  the  current  assets 
and  current  liabilities.  The  company  which  made  so  brave  a show- 
ing on  paper  remains,  its  capital  impaired  over  60  per  cent  and  with 
a poor  $100,000  working  capital  left,  is  about  ready  to  join  the  ranks 
of  those  corporations  whose  reconstruction  is  so  distressing  their 
unfortunate  shareholders  at  the  present  time. 

The  services  to  be  rendered  by  the  public  accountant  are  not 
however  confined  to  the  correction  of  errors  and  abuses.  His 
training  and  independent  position  enable  him  to  suggest  improve- 
ments in  most  accounting  systems,  which  probably  would  not  occur 
to  those  in  charge  of  the  banks.  Where  his  visits  are  made  periodi- 
cally they  are  apt  to  correct  that  tendency  to  get  into  a rut,  which  is 
the  bookkeeper’s  most  common  failing.  Ignorance  and  not  fraud  is 
the  frequent  cause  for  the  failure  of  firms  and  corporations,  errors 
which  at  the  beginning  would  be  readily  rectified,  being  allowed  to 
cumulate  until  their  effect  is  disastrous.  Of  late  years  accountancy, 
as  a profession,  has  materially  advanced  in  proficiency  and  public 
esteem.  It  mainly  depends  on  the  business  man  how  rapid  the 
progress  is  to  be  in  the  future  and  to  what  extent  he  is  to  be  bene- 
fited both  in  his  personal  affairs  and  in  his  responsibilities  as  a cor- 
poration  director.  Herbert  Beck_ 


Philadelphia. 


THE  LABOR  SYSTEM  OF  THE  JOHN  B.  STETSON 

COMPANY. 


The  labor  situation  being  part  of  the  industrial  situation  as 
a whole,  it  necessarily  changes  as  that  develops.  So  no  system  of 
dealing  with  labor  is  of  great  permanence  and  no  system  is  capable 
of  general  application  without  some,  generally  great,  modification 
to  suit  it  to  local  conditions.  Every  concern  of  importance  experi- 
ments with  new  methods,  until  it  finally  evolves  a plan  from  its 
experience  which  is  more  or  less  completely  enforced  in  treating 
with  its  employees. 

The  John  B.  Stetson  Company  of  Philadelphia  is  a stock  com- 
pany capitalized  at  $4,000,000  and  organized  to  engage  in  the 
manufacture  of  fur-felt  hats  of  the  finer  grades.  While  the  scope  of 
its  product  is  thus  limited,  the  quality  desired  in  the  product  has 
demanded,  and  motives  of  economy  have  urged  the  incorporation 
in  the  company’s  plant  of  various  subsidiary  industries  usually 
operated  as  businesses  independent  of  hat-making  proper.  Chief  of 
these  operations  which  the  John  B.  Stetson  Company  has  added  to 
the  numerous  operations  of  the  hatter  are  the  making  of  machines, 
the  cutting  of  fur  from  skins  imported  in  a raw  state  and  the  prepara- 
tion of  the  fur  for  the  felting  process,  the  weaving  of  silk  into  bands, 
the  cutting  of  hides  into  sweat  leathers,  the  printing-  of  dies  on  the 
leathers,  and  the  making  of  boxes.  In  the  aggregate  the  manu- 
facture of  hats  becomes  a complicated  process  requiring  labor  of 
many  diverse  forms.  The  labor  is  divided  among  about  twenty-four 
hundred  employees,  of  whom  nineteen  hundred  are  male  and  five 
hundred  female.  All  but  one  hundred  and  fifty  are  over  sixteen 
years  of  age  and  this  number  comprises  sixty-nine  boys  and  eighty- 
one  girls. 

The  objects  .sought  to  be  obtained  by  the  application  to  this 
body  of  the  labor  system  to  be  described  may  be  thus  outlined : 

1.  The  accomplishment  of  work  of  the  best  quality  possible. 

2.  The  accomplishment  of  work  in  quantity  to  meet  the  demands 
of  the  business. 

3.  The  accomplishment  of  work  at  such  cost  that  the  product 
will  be  profitable. 


[445] 


34 


The  Annals  of  the  American  Academy 


4.  The  maintenance  of  working  conditions  as  healthful  and 
agreeable  as  possible. 

5.  The  encouragement  of  personal  interest  on  the  part  of  the 
individual  employee  in  the  business  as  a whole. 

6.  The  promotion  of  the  general  well-being  of  employees  through 
institutional  establishments. 

These  objects  are  not  co-ordinate,  as  there  is  an  important 
bearing  of  the  last  three  upon  the  first. 

Unskilled  labor  and  mere  machine  operation  occupy  compara- 
tively few  of  the  employees  of  the  company.  The  work  of  the 
largest  and  more  important  departments  requires  skill  of  a high 
degree.  Experience  has  shown  that  this  skill  can  best  be  acquired 
by  having  boys  taught  in  the  departments  themselves.  To  this 
end  the  force  is  recruited  almost  entirely  by  means  of  apprenticeship. 
The  elasticity  of  the  working  force  necessary  to  meet  the  demands 
of  the  business  is  maintained  by  the  extension  or  restriction  of  the 
number  of  boys  indentured.  Shorn  of  its  quaint  phraseology  which 
recalls  the  mediaeval  guild,  the  principal  provisions  of  the  indenture 
are : ( 1 ) Service  on  the  part  of  the  apprentice  for  at  least  three 

years;  if  he  be  under  eighteen  years  of  age,  until  majority.  (2) 

Obligation  on  the  part  of  the  company  to  furnish  necessary  instruc- 
tion. (3)  A wage  of  two  dollars  a week.  In  practice  the  com- 
pany pays  the  apprentice  after  the  first  year  on  a piece-work 

basis  by  which  fair  efficiency  earns  an  amount  far  above  the  stipu- 
lated sum.  At  the  termination  of  the  period  of  apprenticeship  each 
employee  who  has  faithfully  fulfilled  his  obligations  is  given  a sum 
amounting  to  one  dollar  for  every  week  served,  a sum  ranging  from 
$150  to  about  $300. 

The  primary  result  of  apprenticeship  is  a high  order  of  skill  in 
a special  line  of  work.  In  addition  the  long  period  of  service  tends 
to  create  a feeling  of  personal  interest  on  the  part  of  the  employee  in 
the  interests  of  the  company.  A permanence  and  solidarity  of  the 
working  force  is  attained  impossible  under  any  other  system.  Hav- 
ing thoroughly  learned  his  trade  in  making  Stetson  hats  as  an 
apprentice,  the  journeyman  is  very  unlikely  to  leave  the  employ  of  the 
company  when  his  indenture  ends.  Furthermore,  the  system  dis- 
courages the  migratory  habit  so  common  among  workmen,  a habit 
of  moving  from  shop  to  shop  for  little  reason,  which  is  destructive 
in  its  tendencies  both  to  discipline  and  to  good  work. 

[446] 


The  Labor  System  of  the  John  B.  Stetson  Company  35 

The  system  of  promotion  is  based  upon  the  same  idea.  Practi- 
cally all  the  journeymen  have  learned  their  trade  as  apprentices  of 
the  company.  From  the  ranks  of  these  men  it  is  the  policy  of  the 
company  to  fill  the  higher  places.  The  great  majority  of  the  fore- 
men are  men  trained  from  boyhood  in  the  works  who  show  special 
skill  and  ability  to  be  leaders  of  the  other  men.  This  promotion 
from  within  is  a strong  incentive  for  the  ambitious  employee  to 
faithful  and  efficient  service,  and  likewise  tends  to  the  same  solidarity 
of  interest  or  esprit  de  corps  as  results  from  the  system  of  appren- 
ticeship. 

The  separation  of  races  is  another  interesting  feature  of  the 
organization  of  the  labor  force.  The  different  kinds  of  work 
embraced  in  the  business  have  appealed  to  different  classes  of 
workmen.  Some  require  a considerable  mechanical  skill  or  manual 
dexterity.  These  appeal  to  Anglo-Saxon  intelligence  and  quick- 
ness. The  same  reason  causes  them  to  dislike  mere  labor  or  labor 
coupled  with  unpleasant  conditions  such  as  in  the  “sizing”  and 
“blocking”  departments  where  almost  constant  labor  in  very  hot 
water  is  required.  It  was  found  necessary  to  draw  from  different 
sources  for  this  supply,  and  the  races  of  southern  and  eastern 
Europe  were  found  most  available.  These  departments  soon  became 
characterized  by  the  large  majority  of  such  people  employed  in 
them,  and  race  antipathy  was  sufficient  to  stop  further  entrance  to 
these  departments  of  other  races.  The  interests  of  discipline  and 
efficiency  demanded  recognition  of  the  mutual  antipathies,  and  in 
the  interest  of  harmony  certain  elements  are  now  confined  to  certain 
departments. 

Aside  from  the  general  plans  outlined,  there  are  certain  specific 
schemes,  adopted  from  time  to  time  by  the  company,  for  the  pro- 
tection or  encouragement  of  employees,  which  are  partly  benevolent 
and  philanthropic  in  their  nature,  but  which  also  have  a value  dis- 
ciplinary in  a broad  sense.  It  is  the  policy  of  the  company,  so  far 
as  possible,  to  encourage  the  employee  by  his  own  achievement  to 
make  his  way,  to  help  himself,  and  to  provide  himself  against  the 
needs  of  old  age.  The  company  furnishes  the  opportunity  which 
takes  the  following  eight  forms  : 

1.  Prizes  for  apprentices. — In  connection  with  the  celebration 
of  Christmas  it  is  the  custom  to  present  to  the  employees  gifts  in 
various  forms  of  considerable  value.  They  are  made  as  rewards  of 

[447] 


36  The  Annals  of  the  American  Academy 

merit,  an  exact  record  being  kept  of  the  quality  and  quantity  of  the 
work  of  each  apprentice  as  the  basis  of  distribution  of  prizes  ranging 
from  five  dollar  notes  to  watches  of  a value  of  fifty  dollars.  Last 
year  two  hundred  boys  participated  in  the  lowest  award  and  forty 
in  the  highest,  with  various  numbers  in  the  intermediate  classes 
receiving  prizes  of  ten  and  twenty  dollars,  90  per  cent  of  the  appren- 
tices participating.  Special  prizes  of  still  greater  value  were  given 
to  apprentices  for  particularly  good  records,  including  money  and 
paid-up  shares  in  the  building  association. 

2.  Bonuses  for  faithful  work. — In  departments  where  foreign 
workmen  are  largely  employed,  the  proverbial  uncertainty  of  hatters 
and  the  irregularity  with  which  they  worked  led  the  company  to  the 
adoption  of  a system  of  bonuses  paid  at  Christmas  to  the  men  who 
had  worked  continuously  and  faithfully  throughout  the  year.  The 
first  year  of  the  operation  of  the  plan,  5 per  cent  of  his  earnings  for 
the  year  was  paid  to  each  faithful  journeyman.  About  20  per  cent 
of  those  to  whom  it  applied  earned  the  bonus.  The  two  following 
years  10  per  cent  was  paid  to  an  increasing  proportion  of  the  men. 
Last  year  the  percentage  was  increased  to  15  and  about  90  per  cent 
of  the  men  had  worked  with  sufficient  fidelity  to  participate.  Alto- 
gether it  must  be  pronounced  successful,  although  it  should  be 
added  that  some  men,  who  for  the  sake  of  the  bonus  were  able  to 
•control  themselves  on  Saturday  throughout  the  year,  were  unable  to 
do  so  on  Christmas. 

3.  Building  association. — The  John  B.  Stetson  Building  Asso- 
ciation is  intimately  connected  with  the  manufacturing  company. 
It  was  organized  to  encourage  thrift,  to  spread  home  influences,  and 
to  increase  the  permanence  of  the  working  force.  It  has  a large 
membership,  of  which  over  50  per  cent  is  drawn  from  the  employ- 
ees. Fifteen  per  cent  of  the  male  adult  employees  now  own  their 
homes. 

4.  Savings  fund. — -Thrift  and  economy  are  encouraged  and 
hoarding  discouraged  by  the  maintenance  of  a savings  fund  in  which 
5 per  cent  interest  is  paid.  Any  employee  may  deposit  to  the  extent 
of  ten  dollars  per  week.  Over  three  hundred  employees  now  have 
accounts  in  this  fund. 

5.  Stock  allotment. — In  1902  the  company  placed  at  the  disposal 
of  the  president,  to  be  allotted  to  employees,  5>°00  shares  of  its 
increased  common  stock  of  a par  value  of  $500,000.  This  stock  is 

[448] 


The  Labor  System  of  the  John  B.  Stetson  Company  37 

placed  in  the  hands  of  trustees  for  the  benefit  of  the  employees  to 
whom  it  is  allotted.  No  payment  is  made  by  the  employees.  The 
shares  are  to  be  paid  for  at  par  virtually  by  their  own  dividends.  At 
dividend  periods  an  amount  equal  to  the  dividend  on  the  shares 
allotted,  less  5 per  cent  interest  on  the  unpaid  balance  on  the 
shares,  is  paid  to  the  trustees  and  applied  by  them  to  the  payment  of 
the  par  value  of  the  shares.  The  employee  at  his  option  may  draw 
annually  from  the  dividend  not  to  exceed  5 per  cent  of  the  par 
value  of  the  shares  allotted  him.  At  the  end  of  a period  of  fifteen 
years,  if  paid  up,  the  shares  are  to  be  transferred  absolutely  to  the 
employee.  If  paid  up  before  the  end  of  this  period  the  entire  divi- 
dends are  to  be  paid  to  the  employee  until  the  end  of  the  period. 
If  the  employee  is  discharged  or  voluntarily  leaves  the  employ  of  the 
company  during  the  period,  he  is  paid  the  par  value  of  the  shares 
paid  up  at  the  time.  If  he  is  disabled  or  dies,  to  him  or  his  estate  is 
transferred  the  number  of  paid  up  shares.  As  the  market  value  of 
the  stock  is  much  above  the  par  value,  the  latter  method  of  settle- 
ment gives  a greater  value.  A desirable  form  of  insurance  is  thus 
created.  About  one-half  of  the  5,000  shares  have  thus  far  been 
allotted  to  about  two  hundred  and  fifty  employees  in  amounts  from 
five  shares  upward. 

6.  Beneficial  fund. — The  company  maintains  a beneficial  fund 
by  a monthly  assessment  not  exceeding  twenty-five  cents  on  each 
employee.  Deducting  a small  amount  paid  for  the  services  of  a 
physician,  the  whole  of  the  sum  collected  is  paid  in  benefits.  Adult 
employees  incapacitated  for  work  by  illness  or  injury  are  paid  five 
dollars  a week.  In  cases  of  death  the  sum  of  one  hundred  dollars  is 
paid.  During  the  last  year,  381  employees  received  sick  benefits  from 
the  fund  in  various  amounts  up  to  twenty-five  dollars  and  payments 
were  made  in  thirteen  cases  of  death. 

7.  Pensions. — A system  of  pensions  for  aged  or  disabled  employ- 
ees has  been  instituted.  Its  scope,  however,  is  very  limited  at 
present,  owing  to  the  youthfulness  of  the  business  and  the  fact  that 
cases  of  need  among  old  employees  are  rare. 

8.  Besides  the  above  a number  of  institutions  have  been  estab- 
lished of  a more  usual  and  general  nature.  A mission  organization 
has  for  many  years  been  maintained  by  the  company.  The  plant 
includes  a hall  with  a capacity  of  2,500  used  by  a Sunday  school, 
week-day  meetings,  a musical  society  and  various  organizations, 

[449] 


The  Annals  of  the  American  Academy 


38 


religious  and  social.  A free  circulating  library  is  operated  in  connec- 
tion with  the  Sunday  school.  A hospital  and  dispensary  is  main- 
tained, the  history  of  whose  work  with  limited  space  and  facilities  is 
very  creditable.  Its  benefits  are  not  confined  to  employees,  but  are 
open  to  all  and  treatment  is  free  in  cases  of  need.  At  the  present 
time  the  company  is  engaged  in  building  a thoroughly  equipped 
modern  hospital  building  to  meet  the  needs  of  the  neighborhood. 

The  whole  object  of  these  schemes  has  been  the  protection  and 
encouragement  of  faithful,  efficient  service  and  personal  well-being 
and  honesty  on  the  part  of  all  employees.  They  are  all  the  result  of 
the  practical  knowledge  and  experience  of  the  company’s  manage- 
ment. The  success  of  the  company  depends  entirely  upon  the  ability 
of  the  officers  in  managing  it.  The  most  important  element  of  this 
is  the  operation  of  a successful  labor  system  and  that  depends  upon 
the  establishment  of  confidence  on  the  part  of  the  laborers  in  both 
the  ability  and  fairness  of  the  officers.  The  constant  effort  of  every 
department  is  to  reduce  the  cost  of  its  output.  How  this  is  done  is  a 
most  important  point  in  the  maintenance  of  the  complete  confidence 
which  has  been  established.  It  may  be  done  in  three  wavs : By 
reducing  the  cost  of  labor,  by  saving  on  the  material,  or  by  obtaining 
higher  efficiency  in  the  production.  The  fact  that  the  foreman 
usually  has  grown  out  of  the  labor  class  should  be  sufficient  to 
restrain  him  from  unfairness  to  it,  but  a sharp  watch  is  kept  to 
prevent  the  possibility,  and  complaints  are  always  investigated.  A 
boy  or  girl  is  not  allowed  to  do  what  a man  could  do  better.  The 
management  is  always  on  the  lookout  to  see  that  decreased  cost  is 
attained  by  economy  of  materials  used  or  greater  output,  rather 
than  at  the  expense  of  the  wages  of  efficient  employees. 

The  success  of  the  labor  system  of  the  John  B.  Stetson  Com- 
pany is  a difficult  matter  to  put  in  definite  terms,  but  the  superficial 
evidences  can  be  pointed  out.  The  industrial  progress  of  the  com- 
pany shows  that  the  system  pays  in  a financial  way,  while  the  pros- 
perity and  happiness  of  the  employees,  the  freedom  in  the  entire  his- 
tory of  the  business  from  any  serious  disagreement  are  evidences  of 
the  general  satisfaction  of  the  employees  with  the  svstem. 

Albert  T.  Freeman. 


Philadelphia. 


PRESENT  DAY  JOBBING 


The  purpose  of  this  paper  is  a discussion  of  the  jobbing  busi- 
ness of  the  United  States  and  some  of  its  associated  problems. 
Necessarily  So  many  lines  of  trade  are  included,  comprising  food- 
stuffs, utensils,  apparel,  and  mechanical  supplies,  covering  so  vast 
a field  that  it  becomes  impossible  to  fully  present  or  even  to  do  jus- 
tice to  the  subject.  But  the  methods  and  position  of  this  class  of 
distributers  of  manufactured  products  are  on  the  whole  the  same 
and  it  therefore  matters  little  that  the  subject  is  treated  from  the 
standpoint  of  a single  one  of  these,  a hardware  jobber. 

As  commonly  practiced,  the  process  of  distribution  is  threefold, 
•comprising  the  activities  of  the  manufacturer,  jobber,  and  retailer. 
The  manufacturer  makes  the  goods  from  raw  material  and  sells  them 
in  large  quantities  to  the  jobber J who  in  turn  distributes  in  smaller 
lots,  and  oftentimes  on  easier  terms,  to  the  retailer.  There  are  excep- 
tions to  this,  but  as  a rule  the  manufacturer  does  not  reach  the 
retailer,  much  less  the  consumer,  directly,  and  cannot  do  so  to 
advantage.  The  jobber  is  an  intermediary  who  assembles  various 
lines  of  goods,  carries  a large  and  assorted  stock,  and  by  means  of 
traveling  salesmen  and  other  agencies,  sells  these  goods  to  the 
retailer  in  small  assorted  lots,  while  the  retailer  supplies  the  con- 
sumer. 

The  jobber  stands  in  a very  important  position  to  the  manu- 
facturer, in  that  he  purchases  goods  in  large  quantities.  For  many 
things,  the  demand  is  seasonal  and  must  be  supplied  in  quantities  at 
■one  time.  Economical  manufacture  demands  a regular,  even  output, 
and  most  manufacturers  lack  both  the  capital  and  the  facilities  for 
storing  their  output  against  a heavy  and  brief  demand  coming  at 
long  intervals.  The  jobbers  unite  in  taking  this  output  off  the 
manufacturer’s  hands,  storing  and  paying  for  it,  so  that  the  manu- 
facturer is  provided  with  current  funds  instead  of  being  forced  to 
borrow  large  sums  against  the  ultimate  sale  of  an  accumulating 
stock.  In  but  very  few  lines  is  it  practical  for  the  manufacturer  to 
reach  the  retailer  or  the  consumer  direct.  The  jobber  keeps  a 
varied  stock,  which  is  constantly  growing  more  and  more  diversified 
and  complex,  and  justifies  his  existence  by  selling  these  goods  in 
assorted  lots  on  a small  margin  of  profit  to  the  retailer,  on  terms 

[450 


40 


The  Annals  of  the  American  Academy 


which  are  favorable  to  the  small  dealer,  and  oftentimes  carries  him 
through  dull  seasons,  and  aids  in  the  development  of  his  business. 

The  jobber  distributes  these  great  stocks  of  goods  by  means  of 
extensive  stores  and  warehouses,  a large  corps  of  traveling  sales- 
men, and  an  office  force  well  equipped  with  buyers,  bookkeepers  and 
correspondents. 

The  jobber,  as  he  is  known  to-day,  is  a modern  product,  having 
existed  only  since  the  introduction  of  the  factory  system.  When 
goods  were  almost  entirely  made  by  hand,  the  artisan  was  usually 
his  own  retailer,  and  not  only  did  the  manufacturing  but  sold 
his  wares  directly  to  the  consumer.  A large  proportion  of  all  the 
articles  made  two  hundred  years  ago  were  made  to  order  only.  Of 
course  there  were  exceptions,  as  in  the  case  of  imported  goods.  The 
old  caravan  routes  crossing  Asia  and  Europe  are  a proof  of  this 
fact,  but  the  total  sales  made  in  this  way  were  trifling  compared  with 
the  dimensions  of  trade  to-day.  The  local  artisan  knew  his  customer, 
but  with  the  advent  of  the  manufacturer,  production  became  so  great 
that  manufacturers  soon  lost  sight  of  the  consumer.  They  now  made 
the  goods  in  quantities  and  sought  some  one  to  distribute  them. 
This  distributer  was  found  in  the  jobber. 

Fifty  years  ago  the  jobbing  business  in  this  country  was  con- 
trolled by  four  Eastern  cities,  New  York,  Philadelphia,  Boston  and 
Baltimore.  Here  a few  large  jobbers  won  national  prominence  as 
“merchant  princes,”  although  the  aggregate  of  their  business  was 
probably  small  compared  with  the  jobbers  of  to-day ; but  during  the 
last  thirty  or  forty  years,  large  jobbing  houses  have  grown  up  not 
only  in  cities  like  Chicago,  San  Francisco,  St.  Paul  and  St.  Louis, 
but  also  in  many  smaller  towns,  until  we  now  find  it  to  be  a frequent 
ambition  of  retailers  to  class  themselves  as  jobbers,  and  handle  the 
wholesale  business  in  their  own  neighborhood.  This  ramification  of 
the  jobbing  business  is  having  its  effect  on  the  larger  jobbers.  New 
York,  Philadelphia,  Chicago  and  St.  Louis  no  longer  have  a monop- 
oly of  the  jobbing  business,  although  these  large  cities  are  not  easily 
deprived  of  the  advantages  to  which  they  are  naturally  entitled  by 
their  size. 

There  can  be  little  doubt  that  an  ambition  to  do  a larger  business 
is  oftentimes  the  prime  motive  in  the  development  of  a retailer  into 
a jobber,  and  the  retailer  engaged  in  this  struggle  is  too  apt  to  rely 
upon  his  retail  business  for  his  profit,  and  to  consider  his  jobbing 

[452] 


Present  Day  Jobbing 


4i 


business  as  simply  so  much  gain.  This  is  a mistaken  view.  It  often 
causes  much  harder  work  with  little  or  no  result,  and  the  small  dealer 
making  this  venture  is  very  apt  to  become  financially  embarrassed 
in  an  attempt  to  carry  his  smaller  customers,  while  the  necessity  for 
buying  in  large  lots,  in  order  to  rank  as  a jobber,  and  to  obtain  lower 
prices  from  the  manufacturers,  constantly  induces  him  to  over-buy. 

The  main  reliance  of  the  jobber  in  placing  his  goods  upon  the 
shelves  of  the  retailer  is  upon  traveling  salesmen,  who  take  samples 
of  the  wares  with  them  and  go  all  over  the  land,  into  the  smallest 
hamlet,  describing  the  goods,  their  origin,  their  peculiar  qualities  for 
sale  and  for  use,  and  aiding  the  shopkeeper  in  estimating  the  quantity 
which  he  will  be  able  to  use  during  that  season.  The  retail  trade 
of  this  country  owes  a vast  debt  to  the  traveling  salesman,  for  the 
knowledge  given  regarding  the  goods  which  they  handle,  the  expla- 
nation of  business  customs  and  training  received  in  business  methods 
and  ideas.  The  traveling  salesman  is  the  local  representative  of  the 
jobber,  and  if  the  jobber  prides  himself,  as  many  do,  upon  business- 
like habits,  and  practical  and  correct  methods,  salesmen  cannot  fail 
to  impart  some  of  these  ideas  to  the  dealer.  The  retailer  is  con- 
stantly growing  more  intelligent,  partly  because  of  his  pertinent 
inquiries  from  traveling  salesmen  about  the  credit  and  the  amount 
of  fire  insurance  he  carries.  Such  questions  bring  home  to  the  retailer 
the  necessity  of  adopting  correct  business  habits. 

It  may  be  asked:  “Is  not  the  jobber  a costly  distributing 

agency  ?”  and  it  must  be  conceded  that  this  service  is  not  obtained 
without  expense,  but  the  jobber  works  on  a close  margin  and  the 
net  returns  to  him  are  meagre  compared  with  those  of  the  manu- 
facturer and  retailer,  who  both  enjoy  far  greater  percentage  of 
profits,  while  the  annual  increase  in  wealth  and  growth  of  manu- 
facturers far  exceeds  that  of  jobbers.  Owing  to  the  severity  of 
competition  jobbers  are  compelled  to  cut  their  expenses  down  to  the 
lowest  possible  figure,  and  it  is  hard  to  see  how  goods  could  reach 
the  retailers  in  any  other  way.  Under  the  jobbing  system  the  manu- 
facturer is  relieved  of  the  responsibility  and  immense  and  often 
prohibitive  cost  of  introducing  and  distributing  his  goods  in  small 
amounts.  In  this  age  of  specialization  the  jobber  is  a specialist  in 
marketing  goods  and  makes  it  his  lifelong  study  to  do  this  economi- 
cally and  to  the  best  advantage. 

Is  the  relation  of  jobber  to  manufacturer  and  retailer  to  con- 

[453] 


42 


The  Annals  of  the  American  Academy 


tinue?  In  order  to  consider  his  position  more  intelligently  let  us 
look  more  closely  into  the  jobber’s  functions. 

1.  As  a rule,  a manufacturer  makes  a single  line  of  goods  and, 
by  reason  of  his  concentration,  is  able  to  manufacture  cheaply  and 
to  the  best  advantage,  but  the  cost  of  selling  these  single  lines  to  the 
retailer  would  be  so  great  as  to  make  such  a course  prohibitive. 
Some  interesting  analyses  have  been  made  showing  the  number 
of  various  manufactures  included  in  a single  bill  purchased  from 
a jobber.  One  frequently  sees  such  charges  amounting  perhaps  to 
200  pounds  in  weight  and  $25  in  value  and  yet  representing  fifteen 
or  twenty  manufacturers,  clearly  showing  the  enormous  cost  which 
would  be  incurred  if  the  fifteen  or  twenty  manufacturers  attempted 
to  sell  their  goods  directly  to  the  retailer,  while  the  freight  and 
express  charges  on  small  quantities  would  alone  make  such  direct 
dealing  impossible. 

2.  While  one  or  two  manufacturers  have  attempted  to  make 
a general  line  comprising  most  of  the  articles  needed  in  one  jobbing 
line,  there  is  no  manufacturer  to-day  who  can  make  a sufficiently 
varied  output  to  supply  all  a jobber’s  needs,  and,  as  we  know,  the 
tendency  of  modern  manufacturing  is  more  and  more  towards  the 
manufacture  of  a single  line  of  goods — in  some  cases  of  a single 
quality. 

3.  Frequently,  manufacturers  do  not  have  sufficient  capital  to 
enable  them  to  dispose  of  their  goods  in  small  lots  to  the  retailer. 
They  must  have  funds,  and,  by  selling  in  large  lots  to  the  jobber,  who 
usually  takes  the  goods  in  advance  of  the  season  and  discounts  his 
purchases,  they  are  able  to  do  business  on  a smaller  amount  of 
capital. 

4.  The  business  qualities  which  go  to  make  up  the  manufacturer 
and  the  jobber  are  oftentimes  very  different.  There  are  frequent 
cases  where  manufacturers  are  capable  makers  of  goods  but  not 
successful  in  marketing  them. 

5.  The  jobber  insures  the  manufacturer  a more  certain  market. 
We  have  known  large  manufacturers,  who  have  had  on  their  books 
only  fifteen  or  twenty  customers,  all  of  whom  were  large  jobbers, 
while  these  same  jobbers,  probably  had  in  many  cases  three  or  four 
thousand  retail  accounts  on  their  individual  ledgers.  The  manu- 
facturer, therefore,  practically  knows  where  he  can  dispose  of  his 
output,  and  is  enabled  to  do  business  with  greater  certainty.  In 

[454] 


Present  Day  Jobbing 


43 


view  of  all  these  conditions,  it  may  well  be  claimed  that  the  jobber 
is  a most  useful  and  economical  factor  in  distribution.  It  is  not  fair 
to  part  from  this  subject  without  mentioning  a development  of  the 
last  few  years,  which  necessitates  viewing  jobbing  from  another 
standpoint.  This  is  the  growth  of  the  so-called  catalogue  houses. 
These  may  be  divided  into  two  classes  : 

a.  Catalogue  jobbers  who,  like  the  jobber,  sell  to  the  retailer 

only. 

b.  Catalogue  retailers  who  ignore  the  retailer,  and  sell  directly 
to  the  consumer. 

Both  use  the  same  general  methods  in  trying  to  buy  directly 
from  manufacturers  and  in  sending  out  large  net  price  catalogues 
in  which  they  endeavor  to  outbid  all  others  in  making  low  and 
attractive  prices.  This  business  has  had  a remarkable  expansion, 
particularly  in  the  West,  but  side  by  side  has  gone  the  development 
and  increase  of  the  jobbing  business.  This  raises  the  question  of 
the  efficiency  of  the  catalogue  as  compared  with  the  traveling  sales- 
man. There  is  no  doubt  that  the  usual  preference  of  the  retailer 
would  be  to  buy  goods  from  the  traveling  salesman.  Catalogue  or  no 
catalogue,  moreover,  the  salesman  on  the  spot  will  get  the  order  if 
he  meets  the  price.  The  jobber  has  a great  advantage  through  his 
salesmen  over  a firm  selling  by  catalogue.  He  is  kept  more  con- 
stantly apprised  of  local  conditions,  and  so  in  much  closer  association 
with  his  customers. 

Jobbers  have  always  shown  themselves  ready  to  adapt  new 
methods  and  customs.  Only  lately  automobiles  have  been  called  in 
their  service.  Traveling  salesmen  may  now  be  found  going  through 
the  country  in  automobiles,  independent  of  railroads,  time-tables,  and 
annoying  waits  at  railway  stations.  It  is  safe  to  say  the  jobbers  will 
not  allow  themselves  to  be  set  aside,  and  including  in  their  class  many 
of  the  keenest  minds  in  business,  they  will  not  be  slow  to  adopt 
promptly  such  methods  as  may  be  needed  to  maintain  their  position. 
Traveling  salesmen  were  unknown  some  forty  years  ago.  If  the 
retailer  prefers  to  buy  by  mail  from  catalogues,  jobbers  will  no  doubt 
be  as  ready  to  dispense  with  traveling  salesmen  as  they  were  to  take 
them  on  forty  years  ago. 

While  the  catalogue  retailer  is  not  specifically  included  in  our 
discussion  his  effect  on  trade  relations  warrants  a few  words.  The 
catalogue  retailer  is  an  even  later  evolution  than  the  catalogue  jobber. 

[45s] 


44 


The  Annals  of  the  American  Academy 


Several  large  houses  now  aim  to  ignore  the  local  retailer  entirely,, 
and  sell  directly  to  the  consumer.  The  methods  of  these  houses 
may  fairly  be  regarded  as  questionable.  The  local  retailer  is  natu- 
rally more  or  less  prominently  identified  with  local  interests,  and  the 
merchants  of  any  country  town  are  the  pushing  and  progressive 
men  of  the  place.  They  pay  local  taxes,  thereby  helping  to  support 
the  town  and  county  in  which  they  live.  They  carry  their  customers, 
particularly  in  farming  communities  and  in  the  South,  for  long 
periods.  In  times  of  crop  failure,  or  even  in  good  years  between 
crops,  the  local  retailer  is  oftentimes  the  main  dependence  of  the 
farmer,  who,,  without  the  credit  given  him  by  the  retailer,  would 
be  unable  to  get  the  necessaries  of  life.  The  retailer  falls  back  upon 
the  jobber  for  similar  support  in  credit,  but  the  benefits  conferred  by 
the  local  retailer  in  this  way  are  hardly  sufficiently  appreciated.  Too 
often,  the  temptation  of  an  apparently  low  price  will  cause  a con- 
sumer living  in  the  country  or  some  small  town  to  send  his  cash 
to  a catalogue  retailer  in  some  large  city,  while  the  same  day  he 
may  go  to  his  local  retailer  and  ask  three  to  six  months’  credit  on 
something  that  he  is  buying  from  him.  One  such  house,  for  example, 
issues  a catalogue  saying  in  large  type  to  the  consumer:  “This  gives 
you  the  prices  your  dealer  pays  for  the  goods  he  buys  and  will  pre- 
vent him  from  overcharging  you  on  any  goods  you  buy  from  him.” 
This  is  simply  a dog-in-the-manger  business,  entirely  ignoring  the 
principle  of  “live  and  let  live.”  The  moral  propriety  of  such  a 
policy  is  certainly  doubtful. 

Apart,  however,  from  the  ethics  of  the  case,  there  are  many 
disadvantages  of  dealing  altogether  by  mail,  as  the  average  con- 
sumer wishes  to  see  and  handle  goods  before  he  buys  them.  This 
feeling  is  so  strong  that  it  seems  to  insure  the  permanency  of  the 
local  dealer,  and  yet  if  he  is  to  remain,  the  consumer  must  realize 
that  he  owes  a duty  to  his  retailer,  and  that  it  is  not  fair  or  right  to 
send  his  money  to  a catalogue  house  at  a distance,  while  he  compels 
his  local  retailer  to  wait  for  his  money  until  he  sells  his  cherries 
in  the  spring  or  his  corn  in  the  fall.  If  the  local  dealer  is  to  remain, 
how  can  his  wants  be  supplied  except  by  the  jobber? 

Jobbing  ethics,  on  the  whole,  are  most  creditable.  All  first- 
class  jobbers  to-day  act  on  the  principle  that  they  are  in  business 
to  stay.  Many  can  boast  a history  of  from  fifty  to  one  hundred 
years,  and  no  jobber  can  expect  a continued  existence  unless  he  prac- 

[456] 


Present  Day  Jobbing 


45 


tices  honorable  methods,  thereby  winning  and  retaining  the  respect 
and  confidence  of  the  trade.  The  inducements  the  jobber  has  to  offer 
to-day  are  those  of  location,  size  and  variety  of  stock,  prompt  ship- 
ment, courteous  attention,  fair  treatment  and  low  prices,  and  much 
attention  is  paid  by  all  progressive  houses  to  the  improvement  of 
these  advantages. 

As  for  the  traveling  salesman  himself,  it  may  be  said  there 
has  been  a decided  development  in  his  character  and  habits.  The 
old-style  traveler,  who  was  always  associated  with  late  hours  and 
whose  disposition  was  to  treat  his  customers  to  liquor,  is  largely 
passing  away.  A certain  mayor  of  Philadelphia  in  an  attempt  to 
abolish  music  gardens  gained  notoriety  by  his  remark,  “Beer  and 
music  won’t  mix.”  The  general  consensus  of  opinion  in  the  jobbing 
trade  is  that  liquor  and  business  will  not  mix,  and  the  successful 
salesman  of  to-day  must  not  only  be  a man  of  reliable  judgment, 
bright  and  enterprising,  but  he  must  also  have  clean  habits  and  a 
good  character. 

Recent  years  have  shown  in  some  lines  of  business  the  tendency 
of  jobbers  to  come  together  in  jobbing  associations,  and  this  is  in 
line  with  the  general  trend  of  industrial  affairs.  These  jobbing 
associations,  as  a rule,  do  not  partake  of  the  nature  of  a trust,  and 
are  a menace  neither  to  the  retailer  nor  to  the  consumer.  An  evil 
factor  in  competition  has  been  personal  feeling,  and  jobbers,  fre- 
quently in  the  same  city,  have  oftentimes  sacrificed  profits  simply 
because,  not  coming  in  contact  with  fellow-jobbers,  they  have 
taken  for  granted  that  their  competitors  were  not  worthy  of  acquaint- 
ance, and  simply  fit  subjects  for  commercial  war.  Jobbing  asso- 
ciations have  done  much  to  remove  this  personal  feeling.  The 
mere  fact  that  the  members  meet  occasionally,  and  perhaps  once 
or  twice  a year  sit  down  together  to  dinner,  goes  far  toward  break- 
ing up  this  feeling  of  personal  animosity  which  is  far  too  costly 
to  be  carried  into  modern  business.  It  is  rarely  that  such  asso- 
ciations attempt  to  regulate  prices,  but  by  free  interchange  of 
information,  they  prevent  the  spread  of  unfounded  reports,  and 
working  together  are  able  to  take  up  such  matters  as  freight  charges, 
postal  and  express  rates,  and  trade  abuses;  while  some  associations 
have  deliberately  pursued  a policy  of  educating  their  own  weaker 
members  into  proper  business  habits. 

These  associations  also  stand  in  important  relation  to  the 

[457] 


46  The  Annals  of  the  American  Academy 

manufacturers,  and  have  frequently  been  able  to  induce  them  to 
adopt  better  methods  in  the  disposal  of  their  goods.  The  associa- 
tions have  taken  the  view  that  jobbers  are  the  natural  outlet  for  the 
manufacturer,  who  should'  regard  the  jobber  as  his  selling  agent, 
and  not  his  enemy,  and  that  their  interests  are  joint  and  often  identi- 
cal. Manufacturers  have  in  many  cases  readily  responded  to  this 
liberal  idea,  and  an  element  of  harmony  has  thus  been  brought  into 
their  relations.  In  all  such  matters,  jobbing  associations  have  been 
highly  useful,  while  in  these  days  of  mammoth  corporations  and 
trusts,  they  have  often  been  able  to  command  a hearing  where  the 
individual  jobber  would  have  been  ignored. 

Such,  then,  is  a brief  account  of  the  jobber  as  he  appears  to-day. 
He  is  the  outgrowth  of  modern  business  conditions,  and  well 
equipped  to  distribute  cheaply  and  to  the  best  advantage,  the  vast 
volume  of  goods  daily  outpoured  by  manufacturers  who  find  it 
impracticable  to  market  their  goods  directly.  There  seems  to  be  no 
other  channel  through  which  the  retailers  can  be  so  economically  and 
advantageously  supplied  with  a sufficient  assortment  of  goods  in  all 
their  variety  of  sizes  and  styles.  No  other  agency  offers  to  carry 
the  retailer  financially  through  dull  seasons  and  times  of  stress, 
and  without  the  jobber,  manufacturers  would  often  find  it  impossible 
to  obtain  proper  representation  to  the  retailers.  The  jobber  has  won 
his  position  by  hard,  intelligent  work  and  economical  service,  and 
is  apparently  an  indispensable  agent  in  the  distribution  of  goods. 

James  H.  Ritter. 


Philadelphia. 


THE  IMPORTANCE  OF  COST-KEEPING  TO  THE  MANU- 
FACTURER 


Shop  economics  is  a subject  which  has,  of  recent  years,  received 
a great  amount  of  attention  from  various  writers.  All  of  the  impor- 
tant engineering  and  technical  journals  are  devoting  many  of  their 
pages  to  the  discussion  of  this  important  subject.  It  has  been  dis- 
cussed with  more  or  less  ability,  in  all  its  phases  and  details. 

In  order  that  the  manufacturer  may  secure  maximum  produc- 
tion at  a minimum  expense,  it  is  absolutely  essential  for  him  to 
know  what  his  product  is  costing  him.  Not  only  is  it  essential  to 
know  the  gross  cost , but  he  must  also  know  the  cost  at  each  stage. of 
production.  The  three  important  divisions  of  the  cost  of  any  manu- 
factured article  are : Labor,  material  and  general  expense.  The 
simple  record  of  time  and  wages,  in  the  pay-roll  book,  might  appear 
to  be  sufficient  as  far  as  labor  is  concerned.  If  the  subject  be  care- 
fully analyzed,  however,  two  very  important  subdivisions  of  labor 
will  be  found,  namely : Productive  and  non-productive.  Productive 
labor  is  the  labor  expended  in  actually  producing  something.  Non- 
productive labor  is  the  labor  which  is  not  directly  chargeable  to  some 
specific  factory  or  production  order.  Each  of  the  above  elements  of 
labor  can  be  analyzed  into  other  elements  of  importance. 

To  a person  unfamiliar  with  the  subject,  a cost  sheet  might  be 
looked  upon  as  something  valuable  merely  as  a means  of  determin- 
ing or  fixing  a selling  price  for  a given  product.  While  this  is,  of 
course,  one  of  its  functions,  the  general  information  it  places  in  the 
hands  of  the  manager  is  of  no  less  importance.  In  the  analysis  of 
time  and  wages  the  cost  account  should  so  record  all  the  factory 
expenditures  as  to  enable  the  manager  to  be  always  ready  to  place 
his  finger  upon  any  unusual,  or  seemingly  exorbitant,  item  of  cost 
or  expense. 

In  dividing  productive  labor,  the  time  and  wages  should  be 
recorded  as  follows : 

In  the  first  place,  it  should  be  charged  to  its  respective  factory, 
or  production  order,  and  then  to  the  component  of  that  order  on 
which  it  was  expended.  If  the  mere  fixing  of  a selling  price  for 
present  and  future  articles  were  all  that  was  required,  this  would 
be  far  enough  to  carry  the  analysis ; but  its  advantages  will  be  much 

[459] 


48  The  Annals  of  the  American  Academy 

greater  if  the  analysis  be  carried  still  further.  The  time  expended 
and  wages  incurred  on  each  operation  should  be  fully  recorded. 
For  instance,  if  one  of  the  components  of  an  order  was  a cast  spur 
gear,  the  operations  on  this  gear  would  be,  in  their  proper  sequence, 
as  follows : Boring,  facing  hubs,  key  seating,  and  drilling  and  tapping 
for  set-screws.  It  is  obvious  that  should  the  total  time  for  these 
four  simple  operations  be  recorded  as  a lump  sum  of  time  and  money, 
the  manager  would  not  be  so  well  able  to  locate  errors  as  he  would 
if  the  time  and  wages  were  charged  against  each  operation.  It  is 
equally  apparent  that  if  proper  use  was  made  of  the  information  so 
recorded,  as  by  comparison  of  different  records  for  the  same  or 
similar  operation,  the  manager  would  be  enabled  to  see  where  leaks 
occur,  and  take  steps  to  reduce  subsequent  costs,  providing  better 
methods  or  more  skilled  men  could  be  found  . 

Besides,  the  cost  reduction  that  could  be  accomplished  on  sub- 
sequent orders,  it  is  also  possible  to  hold  down  cost  of  operations  on 
running  orders  whose  components  contain  elements  of  time  greater 
than  those  enumerated  above.  To  accomplish  this,  it  is  absolutely 
necessary  that  all  time  and  wages  be  entered  in  their  proper  places 
not  later  than  the  morning  of  the  day  following  their  expenditure. 
All  of  this  demands  hearty  co-operation  between  the  shop  manager 
and  the  cost-keeper.  The  cost-keeper  finds  and  points  out  the  high 
cost,  and  the  manager  locates  the  cause  and  applies  the  remedy. 

Turning  now  to  the  consideration  of  cost-keeping  for  non- 
productive labor,  this  must  be  subdivided  into  the  various  charges  of 
expense,  namely  * Superintendence,  foremanship,  clerk  hire,  repairs, 
maintenance,  power,  heat,  lighting,  etc.  This  work  of  subdivision 
may  be  carried  out  to  any  degree  of  refinement  desired.  The  finer 
these  elements  are  subdivided  the  easier  it  will  be  for  the  manager 
to  correct  errors  and  reduce  costs. 

The  consideration  of  these  two  important  divisions  of  labor 
has  thus  far  been  in  connection  with  the  whole  plant.  In  an  estab- 
lishment where  but  one  manufacturing  department  exists,  or  one 
class  of  work  is  performed,  this  is  sufficient,  but,  as  most  manu- 
facturing consists  of  several  separate  and  distinct  classes  of  work, 
it  is  necessary  to  analyze  still  further. 

Take,  for  example,  a plant  where  it  is  necessary  to  maintain 
the  following  departments : Smith  shop,  machine  shop  and  pattern 
shop.  By  careful  thought,  one  can  readily  reason  that  the  burden 

[460] 


The  Importance  of  Cost-Keeping  to  the  Manufacturer  49 

of  expense  will  be  much  greater  in  some  of  these  than  in  others. 
For  instance,  take  the  smith  shop  with  its  equipment  of  steam  ham- 
mers, forges,  furnaces,  formers,  dies  and  miscellaneous  small  tools. 
These,  while  low  in  first  cost  as  compared  with  the  expensive  equip- 
ment of  the  machine  shop  are  relatively  high  in  the  cost  of  mainte- 
nance, due  to  rapid  depreciation  by  reason  of  the  severe  duty  to  which 
they  are  subjected. 

By  such  a line  of  thought  it  is  easy  to  decide  that  it  is  important 
to  fix,  by  a proper  system  of  accounting,  the  relations  between  “pro- 
ductive” and  “non-productive  labor”  of  each  department.  Without 
such  a division,  it  would  be  impossible  to  tell  whether  or  not  all  of 
the  departments  were  paying  investments.  The  business,  as  a whole, 
might  show  a profit,  but  if  such  an  analysis  were  made,  some  start- 
ling conditions  might  appear.  The  smith  shop  might  show  up  in 
such  a manner  as  to  prove,  conclusively,  that  it  were  better  to 
abandon  it  altogether  and  buy  the  forgings,  or  to  make  further  invest- 
ment in  equipment  and  management  to  cheapen  production. 

To  describe  the  forms  and  methods  necessary  to  accomplish  this 
accounting  for  labor,  would  require  more  space  than  the  writer  has 
at  his  disposal.  Briefly,  a time  card  must  be  made  for  each  opera- 
tion a workman  may  perform  on  a component.  This  time  card 
should  bear  the  date,  workman’s  name,  number  or  name  of  machine, 
production  order  number,  name  or  symbol  of  component,  number 
or  name  of  operation,  number  of  pieces  finished,  time  of  starting, 
time  of  finishing,  elapsed  time,  rate  per  hour,  and  total  wages.  These 
cards  should  be  posted  on  the  cost  sheets  not  later  than  the  day 
following  the  work. 

Next  in  importance  to  the  accounting  for  money  expended  upon 
labor,  is  the  accounting  for  that  expended  upon  materials,  raw  and 
finished.  When  considering  the  subject  of  cost-keeping,  it  is  neces- 
sary to  include  all  the  divisions  of  shop  accounting.  This  is  true 
because  it  is  in  this  department  that  the  results  of  all  accounting 
find  their  final  use,  and  it  is  from  here  that  the  utility  of  all  is  made 
apparent.  The  keeper  of  rough  and  finished  stores  must  make  his 
final  returns  to  the  cost  department,  and  then,  in  turn,  they  are 
charged  to  the  order  or  item  to  which  they  belong.  All  material 
spoiled  when  received,  or  in  handling  in  process  of  manufacture, 
must  be  properly  accounted  for,  and  finally  charged  where  it  truly 
belongs. 

[461] 


50  The  Annals  of  the  American  Academy 

There  are  many  manufacturing  plants  that  are,  to  a casual 
observer,  run  on  very  improved  methods,  and  which,  while  they 
are  probably  paying  dividends,  could  very  materially  increase  these 
dividends  by  simply  keeping  the  floors  clear  of  bolts  and  such  other 
small  items  of  stock  as  become  buried  in  the  accumulated  litter,  and 
which  finally  find  their  way  to  the  scrap  heap  when  the  great  day 
of  house  cleaning  comes  around.  The  value  of  a careful  and  correct 
system  of  stock  accounting,  and  clean  floors,  was  recently  illus- 
trated by  the  president  of  one  of  Philadelphia’s  important  industrial 
establishments.  He  asked  the  following  questions  of  one  of  the 
foremen  who  had  allowed  the  floors  of  his  department  to  become 
covered  with  bolts  and  similar  small  articles  of  stock.  His  ques- 
tions were:  “Have  you  ever  visited  the  United  States  Mint?”  The 
foreman’s  reply  was : “Yes !”  “Well,  then,”  said  the  employer,  “did 
you  see  any  pennies,  nickels,  or  dimes  lying  about  the  floor?”  “No, 
sir,”  answered  the  foreman.  The  employer  then  asked,  “Do  not 
these  bolts,  etc.,  represent  pennies  and  dimes,  and  should  they  not 
be  placed  where  they  can  be  made  to  show  their  value  and  become 
an  asset  to  the  company  instead  of  just  so  much  rubbish?”  There 
is  but  one  answer,  for  every  cent  expended  in  a manufacturing  estab- 
lishment for  anything  that  is  not  at  all  times  available  as  an  asset, 
or  properly  accounted  for,  becomes  just  so  much  of  a reduction  to 
the  profits  of  the  business.  In  addition  to  this,  the  bad  effect  of 
such  a system  of  slovenly  management  is  very  far-reaching  in  its 
influences  on  the  employees. 

In  a certain  large  plant,  where  a pressed  steel  product  is  manu- 
factured, the  care  taken  to  account  for  the  scraps  of  steel  is  most 
impressive  to  any  one  interested  in  cost-keeping.  At  these  works 
every  pound  of  steel  is  followed  with  its  own  dead,  or  flat,  cost 
price  until  it  finds  its  way  into  the  finished  product.  By  this  means 
all  steel  is  charged  against  the  product  into  which  it  enters,  at  exactly 
the  pound  price  paid  for  it  from  the  mill.  In  addition  to  this  each 
order  is  charged  with  exactly  the  amount  of  scrap  made  necessary 
to  produce  it,  and  in  this  way  the  cost  of  the  product  is  as  near  cor- 
rect as  it  is  possible  to  make  it,  so  far  as  the  material  side  is  con- 
cerned. The  scrap  is  treated  as  a by-product,  and,  when  sold,  it  is 
credited  to  manufacture.  No  investigation  of  the  method  of  account- 
ing for  the  time  was  made,  but  I believe  it  fair  to  assume  that  it  is 
equally  as  well  taken  care  of  as  the  material,  inasmuch  as  the  general1 

[462]- 


The  Importance  of  Cost-Keeping  to  the  Manufacturer  51 

manager  stated  that  he  had  recently  compared  the  shop  accounting 
with  the  commercial  accounting  for  a period  of  six  months,  and  had 
found  them  to  balance  within  $98.  This  is  certainly  excellent  when 
one  considers  that  the  business  for  these  six  months  had  amounted 
to  many  thousands  of  dollars.  This  result  is  even  more  astounding 
when  one  realizes  that  but  four  clerks  were  employed  on  cost  work, 
one  of  these  being  the  cost-keeper  himself. 

In  considering  the  accounting  for  material  in  connection  with 
any  cost  system,  it  would  be  well  to  keep  the  above  illustration  in 
mind,  as  it  is,  in  the  writer’s  judgment,  about  as  near  perfection  as 
it  is  possible  to  reach. 

When  considering  the  subject  of  general  expense,  it  is  to  be 
recommended  that  each  article  manufactured  should  bear  its  pro- 
portionate amount  of  this  expense.  This  general  expense  should  be 
divided  into  expense  of  administration,  fixed  charges,  and  general 
shop  supplies.  It  is  desirable,  as  a subdivision  of  the  fixed  charge 
cost  account,  to  keep  a machine  cost  sheet,  and  in  this  way  make 
each  article  carry  very  closely  its  proper  amount  of  general  expense. 

In  order  to  consider  the  reasons  for  this,  it  is  necessary  to 
examine  the  other  method  of  distributing  this  expense  over  the  costs, 
namely:  the  fixing  (by  deductions  from  figures  previously  com- 
piled) a percentage  of  the  total  productive  wage  bill  which  will  cover 
the  total  non-productive  labor  and  general  expense. 

After  this  percentage  has  been  decided  upon  all  productive  labor 
is  made  to  bear  this  percentage,  and  in  that  way  the  amount  is 
charged  up  to  the  cost  of  each  piece. 

Example : 

2 Hours  @ 30c.  = .60  = dead  cost 

50%  = .30  = general  expense,  etc. 


.90  Mf’d  cost. 

Let  us  now  suppose  that  the  above  two  hours  were  turned  in 
by  a man  working  on  a four  thousand  dollar  ($4,000)  boring  mill. 
This  mill,  in  addition  to  the  first  cost,  would  require  considerable 
time  and  money  expended  for  maintenance  and  a valuable  collection 
of  small  tools  and  accessories,  together  with  power  used  and  floor 
space  occupied.  All  that  would  be  charged  to  this  work  would  be 
thirty  cents  (30c.)  to  cover  the  above. 

[463] 


52 


The  Annals  of  the  American  Academy 


The  other  extreme  to  this  would  be  a man  working  on  floor 
work  with  a hammer  and  chisel.  He,  too,  works  two  hours,  rate 
also  thirty  cents  per  hour.  The  cost  of  his  work  would  be  figured 
as  follows : 

2 Hours  @ 30c.  — .60  — dead  cost 

50%  — .30  = general  expense,  etc. 


.90  Mf’d  cost. 

Here  again  we  have  thirty  cents  (30c.)  charged  to  cover  the 
general  expense,  depreciation,  etc.  In  one  case  the  man  using  an 
equipment  representing  a large  investment,  and  in  the  other,  one 
that  costs  but  very  little.  It  is  obvious  that  such  a method  will  make 
the  costs  much  too  low  in  one  case  and  much  too  high  in  the  other. 
The  safer  and  better  way  is  to  fix  an  hourly  rate  to  cover  each 
machine  in  the  shop  and  then  finally  a percentage  to  cover  that 
expense  which  is  not  directly  chargeable  to  the  machines,  and  add 
this  percentage  to  all  labor,  whether  hand  or  machine.  In  this  way 
the  general  expense  will  be  properly  placed  against  the  work  to 
which  it  belongs. 

There  are  many  cases  where  too  much  detail  is  gone  into  and 
too  much  system  applied ; and  in  them  the  ability  of  the  manager  will 
be  first  apparent.  He  will  know  just  how  much  refinement  his  busi- 
ness requires,  and,  finally,  after  he  gets  it,  he  will  know  how  to  apply 
it  to  an  advantage.  Why  should  a manager  waste  his  time  running 
about  the  plant  looking  up  trifling  details,  making  himself — and  in 
the  majority  of  cases  the  people  who  are  paying  him  a large  salary — 
believe  that  he  is  a much  overworked  man,  and  finally  end  in  hav- 
ing an  assistant  to  help  him  in  this  never-ending  search  for  informa- 
tion, which,  even  if  they  find  it,  will  never  be  put  in  proper  form  to 
be  of  future  use.  By  this  line  of  argument,  it  is  not  purposed  to 
advise,  or  even  hint,  that  a manager  should  not  give  his  attention  to 
details,  but,  on  the  contrary,  to  say  most  emphatically,  that  he 
should  have  a system  of  correct  forms  and  a trained  force  of  clerks 
to  collect  this  data,  and  day  in  and  day  out,  present  to  him,  in  their 
proper  sequence,  the  facts  relative  to  these  details  of  his  business, 
so  that  he  may  make  his  comparisons  and  thereby  cheapen  his  pro- 
duction, hold  down  the  running  expenses  of  his  business,  and  read- 
just his  employees’  wages. 


[464] 


The  Importance  of  Cost-Keeping  to  the  Manufacturer  53 

The  readjustment  of  wages  is  a very  important  detail  in  con- 
nection with  any  business.  A capitalist  does  not  invest  his  money 
in  a miscellaneous  lot  of  securities  and  enterprises  and  then,  because 
on  the  whole  he  makes  money,  lose  sight  of  them  individually. 
He  keeps  his  eye  on  each  one,  and  knows  exactly  whether  this  one 
pays,  or  that  one  does  not  pay.  When  he  finds  one  that  does  not 
pay,  he  rids  himself  of  it  as  soon  as  convenient  and  with  as  little 
loss  as  possible.  A number  of  employees  paid  wages  for  performing 
certain  duties  are  just  so  many  investments  of  capital,  and  they 
should  be  accounted  for  just  as  carefully  as  stocks,  bonds  and  like 
securities.  A manager  cannot  adjust  wages  with  judicial  fairness 
if  he  has  not  always  before  him  a personal  account  with  each  man 
employed,  and  he  cannot  have  this  record  unless  he  has  a complete 
system  of  cost  accounting.  He  will  never  accomplish  this,  as  so 
many  hope  to  do,  by  simply  making  trips  through  the  shop  or  fac- 
tory and  making  an  observation  of  first  this  or  that  man,  and  say- 
ing to  himself,  “Well,  ‘Smart’  is  certainly  a first-class  man,  but 
‘Steady’  is  only  fair.’’  Take  such  an  observation,  for  example,  as 
to  the  fairness  of  this  style  of  keeping  a record  of  individual  work- 
men. “Smart”  is  the  man  who  is  always  on  the  lookout  for  the 
“Boss,”  and  can  generally  be  relied  upon  to  tell  you  correctly,  if 
you  are  on  the  hunt  for  that  individual,  where  to  find  him,  or  at 
least  the  direction  in  which  he  was  traveling  five  minutes  ago.  He 
always  knows  whether  the  “Boss”  is  where  he  can  see  him,  and 
whether  he  is  observing  what  he,  “Smart,”  is  doing.  What  is  the 
result?  Whenever  the  “Boss”  is  looking,  “Smart”  puts  on  an  extra 
spurt,  makes  a great  pretence  of  fast  work  and  close  application  to 
duty,  and  keeps  this  up  just  as  long  as  he  is  being  observed;  but 
as  soon  as  the  “Boss”  turns  his  eyes,  or  has  passed  out  of  observing 
distance,  “Smart”  puts  just  as  much  energy  into  figuring  out  where 
and  when  he  is  likely  to  turn  up  again.  In  consequence  his  day’s 
work  is  made  up  of  a few  spurts,  and  a tremendous  amount  of  energy 
expended  in  figuring  out  how  to  fool  the  “Boss.” 

What  about  “Steady”?  He  is  working  right  beside  “Smart,” 
but  he  is  attending  assiduously  to  his  work  and  minding  his  own 
business,  and  doesn’t  even  know  that  he  is  being  observed.  There 
is  no  apparent  rush  or  hustle  about  his  work,  and  none  of  the  seem- 
ing speed  or  vim  that  we  have  noticed  in  “Smart,”  at  this  particular 
moment,  and  he  must  naturally  appear  at  a decided  disadvantage 

[465] 


54 


The  Annals  of  the  American  Academy 


beside  his  shopmate  “Smart.”  The  result  of  the  observation,  in  the 
mind  of  the  “Boss,”  then  is,  as  described  above,  that  “Smart,”  is  a 
first-class  man,  and  “Steady”  is  only  a fair  one.  When  the  day  for 
raising  wages  comes  around — and  such  managers  generally  have  a 
certain  time  for  raising  wages — “Smart’s”  pay  is  increased  and 
“Steady”  is  left  at  the  same  old  rate,  and  after  a sufficient  number 
of  observations,  he  is  probably  dropped  altogether,  and  the  manager 
proceeds  to  look  for  another  “Smart.”  It  is  evident  that  such  a 
method  of  judging  the  value  of  men  is  very  unjust  and  very  detri- 
mental to  the  business.  Should  a manager  persist  in  weeding  out 
his  men,  on  this  basis,  he  will  finally  wind  up  by  having  a shopful  of 
what  may  be  termed  “professional  loafers,”  to  whom  he  is  paying 
high  wages  because  they  deceive  him. 

A correct  system  of  cost  accounting  will  present  to  the  manager 
a daily,  a weekly,  or  monthly  statement  of  the  work  done  by  each 
employee,  in  such  form  as  to  enable  him  to  make  comparisons  and 
deduce  the  facts  relating  to  any  particular  individual.  It  is  surely 
evident  that  such  a method  of  judging  men  is  infinitely  more  just, 
safe,  and  effective  than  the  one  previously  described. 

Having  examined  the  two  methods  of  considering  a workman’s 
value  on  the  basis  of  the  use  he  makes  of  the  time  for  which  he 
receives  pay,  let  us  now  consider  how  best  to  trace  and  account  for 
the  equipment,  small  tools,  accessories,  and  material  that  are  sure  to 
be  in  his  care  during  his  term  of  service.  It  is  important  that  the 
manager  account  for  every  dollar  invested,  either  in  plant  or  material. 
This  cannot  be  accomplished  by  a system  of  journeys  of  observation 
through  the  plant,  any  more  than  he  can  account  for  the  workman’s 
time  by  such  a system.  He  must  have  a system  of  standards  in  his 
tool  room  and  shop,  and  must  maintain  this  system  of  standards  by 
locating,  at  all  times,  any  violation  thereof.  By  this  I mean,  that  he 
must  have  a predetermined  stock  of  small  tools  in  his  tool  room  and 
these  small  tools  ground  to  correct  angles  and  shapes.  When  one  of 
these  tools  is  injured,  either  as  to  angle  or  shape,  or  perhaps  broken, 
this  system  should  tell  him,  beyond  a question  of  doubt,  who  is  at 
fault,  and  the  cause  for  such  damage.  Without  a thorough  system  of 
accounting,  the  system  of  standards  will  soon  be  destroyed. 

This  has  been  called  “The  age  of  intensified  production,”  and 
this  is  surely  true,  for,  no  matter  where  you  go,  you  will  find  manu- 
facturers making  heroic  efforts  to  keep  up  with  the  tremendous 

[466] 


The  Importance  of  Cost-Keeping  to  the  Manufacturer  55 

pace  set  by  some  more  energetic  and  systematic  competitor.  This 
being  true,  it  is  evident  that  he  must,  of  necessity,  keep  a very  close 
track  of  all  the  small  details  of  his  business. 

A few  years  ago  a machinist  would  be  fined  for  wearing  out  a 
tool.  To-day  the  wise  manager  pays  the  man  a premium  for  wear- 
ing it  out — with  the  proviso,  of  course,  that  he  accomplishes  the 
work  that  the  tool  is  capable  of  performing.  Take,  for  instance, 
a lot  of  small  sprocket  wheels  which  have  to  be  drilled.  By  careful 
analysis  it  is  found  that  it  will  pay  to  run  the  drills  so  fast  that  each 
drill  press  will  completely  use  up  one  drill  in  a day  of  nine  hours, 
in  spite  of  the  fact  that  twice  as  many  holes  could  have  been  drilled 
by  each  drill  used  at  two-thirds  this  speed.  This  could  not  have 
been  determined  except  by  a correct  system  of  cost  accounting. 

A few  years  ago  the  machine-shop  manager  paid  seven  cents 
per  pound  for  his  tool  steel,  and  nursed  both  machine  and  tool. 
To-day  he  pays  seventy  cents  per  pound  for  tool  steel,  and  drives 
both  to  the  limit  of  their  endurance.  It  would  not  be  possible  to 
determine  such  a great  problem  of  shop  economics  by  any  loose 

system  of  accounting.  He  must  know  exactly  what  all  this  extra 

expenditure  of  money  and  energy  is  bringing  him  in  return,  in  order 
to  ascertain  whether  he  is  being  repaid  for  his  trouble  and  expense. 

Going  back  again  to  tools : In  the  days  of  seven-cent  tool  steel, 
an  ordinary  round  nose  roughing  tool  cost  forty-five  cents  up  to  a 
dollar  and  twenty-five  cents,  according  to  the  section  and  length 
of  the  tool.  To-day,  when  paying  seventy  cents  for  tool  steel,  the 
same  style  of  tool  costs,  with  its  special  treatment,  from  three 
dollars  and  seventy-five  cents  up  to  as  much  as,  in  some  cases,  ten 

dollars.  It  is  apparent  that  the  manager  should  know  just  what 

each  of  these  tools  is  doing,  and  what  becomes  of  them.  This  can 
only  be  accomplished  by  a proper  check  system  in  the  tool  room, 
and  this  check  system  must,  in  turn,  be  rigidly  enforced.  This  check 
system  should  be  of  such  a nature  that  it  will  fix  the  location 
of  any  tool,  and  the  length  of  time  it  has  been  so  located.  What 
is  true  of  the  cutting  tool  is  also  true  of  all  the  other  small  tools, 
and  likewise  true  of  the  equipment.  The  system  must  record  the 
cost  of  material  as  well  as  the  labor  entering  into  the  various  items 
of  expense. 

In  an  establishment  paying  its  employees  by  any  of  the  various 
piece-work  plans,  it  is  to  the  cost  department  that  the  manager  will 

[467] 


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turn  for  information  upon  which  to  base  his  rates.  In  many  estab- 
lishments operating  under  a piece-work  system,  the  cost-keeper  is 
the  man  who  fixes  the  rates.  In  all  well-regulated  plants  he  is  the 
person  who  records  all  such  transactions  with  the  men,  and  sees  to 
it  that  the  workman  receives  his  pay  when  the  contract  is  completed. 
He  not  only  records  piece-work  time  and  wages,  but  has  direct  super- 
vision of  all  time-keeping  and  payment  of  wages. 

Mr.  Frederic  W.  Taylor,  the  pioneer  and  foremost  inventor  of 
advanced  systems  of  shop  management  has,  in  his  plan  of  functional 
foremanship,  considered  the  cost-keeper  of  such  importance  that 
he  has  made  him  one  of  his  functional  foremen.  He  has  given  him 
direct  charge  of  the  men,  and  made  them  directly  responsible  for  all 
matters  pertaining  to  time  and  cost.  This  leads  to  another  line  of* 
thought.  If  a manufacturer  decides  to  install  a system  of  cost  and 
factory  accounting,  and  places  a man  in  charge  of  the  same,  the 
cost-keeper  will  proceed  to  collect  data  and  information,  but  he  will 
be  unable  to  make  this  data  of  any  real  value  unless  he  is  given 
the  proper  amount  of  authority  to  apply  the  facts  so  ascertained. 
No  one  can  ever  accomplish  any  real  good  if  he  is  compelled  to 
apologize  to  some  one,  at  every  turn,  for  having  exceeded  his  author- 
ity. He  must,  of  course,  have  respect  for  vested  authority  where- 
ever  he  finds  it,  but  he  must  also  have  sufficient  authority  vested  in 
him  to  enable  him  to  accomplish  the  desired  end.  If  this  is  not 
the  case,  he  would  be  very  much  in  the  position  of  a jockey  who 
might  be  placed  astride  of  a race  horse  and  told  to  win  the  race, 
but  on  no  account  to  use  whip  or  spur.  His  only  means  would  be 
gentle  persuasion,  and  when  the  pace  became  hot  he  would  fall 
behind,  finish  in  the  rear,  or,  perhaps  be  distanced  altogether. 

To  sum  up  all  this,  the  cost-accounting  department  must  record 
all  information  relative  to  time  and  material,  so  as  to  be  a means 
toward  the  end  of  reducing  costs  and  expenses,  and  then,  after 
such  records  are  made,  to  assist  in  their  application  toward  that 
end.  The  qualifications  of  the  head  of  such  a department  have 
been  well  stated  in  the  following  quotation  from  Mr.  Gunn’s  article 
on  “Cost-Keeping;  a Subject  of  Fundamental  Importance”: 

“Cost-finding  is  not  merely  the  work  of  an  accountant,  no 
matter  how  competent  he  may  be.  It  is  the  work  of  an  engineer, 
supplemented  by  the  best  accounting  knowledge  he  can  command. 
The  engineer,  in  turn,  must  be  possessed  of  an  executive  faculty 

[468] 


The  Importance  of  Cost-Keeping  to  the  Manufacturer  57 

to  such  a high  degree  that  he  shall  be  able  to  create  and  administer 
an  organization  which  not  only  finds  but  shall  continue  to  find  costs. 
Having  found  costs,  this  executive  must  be  possessed  of  a sufficiently 
broad  knowledge  of  that  portion  of  the  industrial  world  to  which 
he  is  related,  to  be  able  to  use  the  information  which  he  has,  and  to 
preserve  such  an  organization  as  will  insure  facts  for  each  succeed- 
ing month  or  year  being  presented  in  like  manner  with  those  first 
compiled,  so  that  he  may  receive  the  full  benefit  of  comparison.  For 
costs  have  no  value  except  in  comparison,  that  action  may  be  directed 
bv  experience.” 


Philadelphia. 


Conrad  N.  Lauer. 


ADVERTISING 


Advertising  is  a means  of  extending  the  field  of  one’s  business 
operations  beyond  their  otherwise  prescribed  limits.  Trade,  like 
natural  forces,  travels  along  the  lines  of  least  resistance.  It  is  almost 
an  axiom  that  the  line  of  least  resistance  is  mutual  confidence  and 
respect. 

For  an  article  to  be  successfully  advertised,  the  first  question  is : 
Do  people  need  it?  Does  it  respond  to  some  already  expressed  or 
dormant  demand?  Above  all,  the  fundamental  requirement — the 
basis  of  all  confidence — is  that  the  advertised  article  or  service  should 
be  good.  A high  degree  of  success,  a permanent  hold  upon  the 
public  interest,  is  not  possible  without  this.  The  flaw  in  the  article 
becomes  recognized  as  quickly  as  a weed  that  springs  from  apparently 
good  seed.  Good  advertising — no  more  than  good  soil — can  continue 
to  hide  the  real  character  of  a poor  article. 

Starting  with  a good  article  that  inspires  confidence,  the  next 
question  for  the  advertiser  to  settle  is : Is  this  an  opportune  time 

and  what  is  the  right  place  to  advertise?  For  the  advertiser,  this 
involves  the  question  of  mediums  and  localities,  and  the  answer 
is  dependent  upon  experience  and  knowledge.  It  is  not  enough 
to  place  advertisements  and  await  results.  They  must  be  ^carefully 
and  systematically  followed  up, — each  inquiry  turned  into  results. 
Public  confidence  can  only  be  won  by  honest,  truthful  and  effective 
statements.  Whatever  the  amount  of  money  spent,  its  power  is 
greatly  increased  by  advertising  of  this  reasonable  and  substantial 
character.  This  is  instanced  by  a remark  of  a late  president  of  the 
Royal  Baking  Powder  Company:  “It  took  $15,000,000  to  put  this 
business  where  it  is,  and  it  will  take  at  least  $15,000,000  to  tear  it 
down.”  Notice  the  emphasis  upon  at  least.  It  shows  the  strength 
which  reputation  gives  and  the  incalculable  value  of  securing  a hold 
on  public  confidence. 

Some  of  the  specific  advantages  of  advertising  to  the  business 
man  are : the  opportunity  to  enlarge  his  field  of  operations,  the  ability 
to  maintain  prices,  the  obtaining  of  an  assured  custom,  and  the  simpli- 
fication of  business. 

Advertising  is  to  the  field  of  distribution  what  the  railroad  is 
to  transportation.  With  the  ox  and  wagon,  the  horse  and  the 
sailboat,  goods  could  only  be  carried  a short  distance,  but  the  rail- 

[470] 


Advertising 


59 


road  or  the  steamboat  makes  the  fruit  of  California  a familiar  article 
of  purchase  in  New  York,  or  the  American  locomotive  a valuable 
adjunct  to  trans-Siberian  service.  The  public  crier  arouses  the 
interest  of  but  few  people,  the  salesman  is  limited  in  the  space  he 
can  cover,  but  printed  words  in  circulars,  magazines  and  newspapers 
can  be  scattered  broadcast  over  the  country,  telling  the  resident  of 
a ranch  in  Arizona  or  a sheep  farm  in  Australia  of  articles  manu- 
factured in  London  or  New  York.  The  large  department  stores 
attract  the  casual  passer-by  by  their  handsomely  trimmed  windows, 
but  their  extensive  business  is  due  to  the  use  of  all  other  legitimate 
means  of  advertising.  Over  a hundred  years  ago  a physician  made 
a prescription  for  a soap  to  be  used  in  washing  wounds.  To-day, 
as  the  result  of  advertising,  Pears’  soap  is  better  known  than  England 
herself.  Intelligent  sales  agents  in  Japan,  China  and  the  United 
States  make  every  effort  to  familiarize  the  people  with  its  value; 
and  the  advertising  of  the  soap  has  made  it  a world-power  in  the 
soap-business. 

The  possible  boundaries  for  the  extension  of  business  by  adver- 
tising is  the  world.  The  stimulus  to  inventors  must  be  increased 
by  the  knowledge  that  their  labor-saving  devices  and  comforts  can- 
not only  be  made  to  benefit  a large  portion  of  humanity,  but  that 
their  own  rewards  can  be  immediate  and  great. 

Advertising  helps  to  secure  the  highest  prices.  Every  man  who 
invents  something  or  manufactures  an  article  out  of  good  materials 
should  have  the  reward  of  his  service.  Moreover,  the  public  like  to 
know  their  money  is  going  for  the  real  thing.  There  is  a class  of 
people  who  secure  business  on  price  alone.  We  call  them  “pirates,”  or 
rather  “parasites,”  who  live  on  the  product  of  other  people’s  brains — 
the  demand  created  by  others.  They  make  no  contribution  to  the  wel- 
fare of  society.  Their  tendency  is  to  degrade  rather  than  to  elevate, 
to  destroy  rather  than  to  create.  For  example,  Scott’s  Emulsion, 
which  is  recognized  by  physicians  as  an  excellent  article,  and  which, 
after  a large  expenditure  of  money,  has  secured  recognition,  is  now 
widely  imitated.  These  imitations  are  offered  to  the  druggist  as 
being  “as  good  as  Scott’s,”  and  allowing  a wider  margin  of  profit. 
The  only  way  in  which  the  original  makers  of  the  cod  liver  oil  have 
prevented  the  substitution  of  an  inferior  article  selling  at  a lower 
price,  is  by  advertising  and  creating  such  a demand  for  the  original 
article  that  the  druggist  must  recognize  it.  Extensive  advertising 

[471] 


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The  Annals  of  the  American  Academy 


results  in  standardizing  an  article.  People  become  familiar  with  its 
special  features  and  they  are  willing  to  pay  for  them. 

Another  advantage  of  advertising  is  assured  business.  By  creat- 
ing a large  demand,  a manufacturer  can  have  the  satisfaction  of  feel- 
ing that  there  is  no  danger  of  his  mills  standing  idle.  More  than 
that,  when  one  factory  becomes  crowded  with  orders  and  is  work- 
ing day  and  night,  he  feels  justified  in  extending  his  business,  and 
building  a new  factory,  but  he  still  keeps  on  advertising,  knowing 
that,  in  this  way,  can  he  keep  up  a steady  and  constant  demand,  and 
assure  himself  of  sufficient  business.  I know  of  one  concern  which  six 
or  seven  years  ago  was  hardly  known  ; but  now,  thanks  to  advertising, 
it  is  a leading  concern  doing  a business  of  probably  $6,000,000  a 
year.  I also  know  of  an  automobile  company  that  is  spending 
$50,000  this  season  in  advertising,  although  it  has  every  machine 
sold  that  it  can  turn  out  before  the  first  of  August.  It  is  advertis- 
ing so  that  it  can  extend  its  plant ; for  next  year  will  probably  be 
the  great  year  in  the  business ; and  it  wishes  its  automobiles  to  be 
recognized  as  standard  goods. 

Finally  advertising  simplifies  business.  The  most  primitive  way 
of  doing  business  is  the  most  complicated.  A man  invents  a broom 
with  a patent  spring  that  enables  it  to  take  hold  of  the  carpet  with 
less  strain  upon  the  person  who  sweeps.  He  makes  this  broom 
with  his  own  hands,  takes  it  about  and  shows  it  to  housekeepers, 
obtains  and  fills  orders,  collects  the  money  and  keeps  his  own  books 
when  credit  is  allowed.  In  other  words,  he  does  everything  himself. 
Now  suppose  his  business  grows,  he  has  more  than  he  can  attend  to 
and  he  employs  others  to  do  these  various  things.  Each  by  limiting 
himself  to  one  thing,  does  it  better  and  cheaper  than  the  broom- 
maker  himself.  By  advertising  he  creates  a demand  for  his  broom, 
and  he  is  enabled  to  systematize  his  buying,  selling  and  office  work,  so 
that  every  department  is  reduced  to  the  simplest  form.  His  own  work 
consists  in  merely  criticizing,  inspiring  and  improving  the  work 
of  others.  A large  business  is  enabled  to  specialize,  and  to  purchase 
and  use  all  the  best  business  devices. 

Another  method  of  simplifying  business  is  to  concentrate  upon 
one  or  a few  articles.  I recently  visited  a factory  in  which  some 
twenty  kinds  of  underwear  were  manufactured.  This  manufacturer’s 
latest  article  was  his  best  seller,  running  far  ahead  of  other  goods. 
I suggested  that  he  could  put  his  whole  factory  upon  this  one  kind. 

[472] 


Thirty  thousand  or  forty  thousand  dollars’  worth  of  advertising  each 
year  would  in  a few  years  give  him  such  a business  that  he  would 
have  no  room  for  other  goods.  The  American  people  want  just  this 
article  for  which  he  has  the  patent.  He  will  thus  simplify  his 
business,  make  more  money  and  make  several  millions  of  people 
more  comfortable. 

The  very  features  of  advertising  which  make  it  of  value  to  the 
business  man,  also  benefit  the  community.  In  the  first  place,  adver- 
tising educates  people  in  a knowledge  of  standards  of  quality  and 
cost.  They  become  more  appreciative  of  a good  thing,  especially  of 
such  goods  as  never  deteriorate  in  quality.  They  learn  to  vary  their 
purchases,  to  try  new  articles  and  to  look  for  the  best.  They  can, 
moreover,  become  independent  of  the  monopoly  of  their  local  dealer, 
not  only  as  to  what  they  should  buy,  but  also  in  the  prices  paid 
for  things.  This  is  of  special  interest  in  the  country  districts,  where 
dwellers  by  reading  magazines,  newspapers  and  catalogues  can 
obtain  city  articles  and  a wide  choice  of  goods.  Take  for  example 
the  piano  player,  one  of  the  greatest  musical  helps  that  has  ever  come 
to  the  world.  It  brings  to  the  remotest  home  the  world’s  great 
musical  compositions  and  gives  to  those  who  are  deprived  of  the 
opportunity  of  hearing  concerts  and  players  an  opportunity  to  hear 
good  music  well  played.  Where  people  have  the  necessary  musical 
appreciation,  these  piano  players  are  a tremendous  addition  to  the 
breadth  and  scope  of  every-day  living.  Advertising  benefits  society 
by  bringing  the  extremes  of  the  country  together,  making  all  more 
cosmopolitan,  and  permitting  all  to  enjoy  the  same  luxuries  and 
comforts. 

I have  already  suggested  that  an  advertiser  must  maintain  the 
quality  of  his  goods,  or  his  money  will  soon  be  thrown  away  and  his 
success  will  be  only  short  lived.  In  this  way  advertisers,  by  stamping 
their  own  makes,  have  made  it  possible  for  people  to  discriminate 
between  the  poor  and  excellent. 

Granting  that  advertising  is  a good  thing,  what  is  the  best 
way  for  the  business  man  to  advertise?  The  specializing  of  adver- 
tising as  a business  is  evinced  by  the  growth  of  large  advertising 
companies  and  the  success  of  especially  gifted  men.  The  necessity  of 
specializing  is  furthermore  made  evident  by  the  tendency  to  have  a 
separate  department,  with  a trained  advertiser  at  its  head.  In  the 
■ordinary  business  there  are  exceptional  cases  in  which  the  owner  of 

[473] 


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The  Annals  of  the  American  Academy 


the  business  is  especially  gifted  with  the  power  of  successful  advertis- 
ing, but,  as  a rule,  the  advertising  is  either  neglected  or  inadequately 
managed.  The  finding  of  the  advertisable  feature  in  a man’s  busi- 
ness, or  if  it  does  not  exist,  finding  it  outside  and  putting  it  there,  is 
an  art.  It  is  here  that  the  value  of  the  agency  exists.  Trained  adver- 
tisers are  men  who  can  advertise  any  business,  after  a study  of  its 
peculiarities.  They  are  familiar  with  methods  and  can  adjust  them  to 
meet  specific  needs.  Moreover,  the  agency  possesses  the  technical 
knowledge  of  mediums,  literature,  printing,  illustration,  etc. 

The  first  business  of  the  advertising  agency  is  to  give  advice. 
It  is  necessary  to  ascertain  whether  the  article  or  articles  are  good 
subjects  for  advertising,  whether  the  business  is  so  organized  that 
satisfactory  results  can  be  obtained,  and  to  determine  the  amount 
of  money  to  be  expended.  Mediums  must  be  decided  upon  according 
to  the  character  of  the  article.  The  advertising  agent  visits  the 
plant  frequently,  obtaining  full  information  from  the  advertiser  and 
his  subordinates ; he  prepares  copy,  designs,  plates  and  electrotypes, 
and  sends  the  different  orders  to  the  mediums  at  the  right  prices  with 
stipulations  as  to  position,  etc.  It  is  his  duty  to  watch  closely 
to  see  whether  the  advertisement  is  properly  placed  and  correctly  set.. 
The  bill  is  rendered  to  him,  he  checks  it,  and  renders  the  advertiser 
a bill  for  the  entire  service.  This  simplifies  the  work  of  the  advertiser, 
relieving  him  from  all  details.  The  agency  necessarily  has  all  the 
technical  knowledge,  involving  the  value  of  mediums,  their  prices,  the 
manner  of  getting  position  and  copy. 

The  secret  of  advertising  success,  then,  is : first,  have  an  article 
of  high  order  that  people  really  want ; then  sell  it  in  an  agreeable,  tact- 
ful and  honest  way ; advertise  it  in  the  same  way. 

Whatever  a manufacturer  can  do  better  than  anyone  else,  and 
has  time  to  do,  let  him  do  it  himself,  or  let  it  be  done  immediately 
under  his  supervision.  Whatever  parts  of  this  process  he  cannot  do 
himself,  let  him  get  it  done  by  the  person  or  concern  that  can  do  it 
honestly,  capably,  and  thoroughly. 

It  is  as  sure  as  anything  in  this  world  that  the  man  who  is  manu- 
facturing, selling,  and  advertising  along  these  lines,  and  with  thor- 
oughness besides,  will  win  for  himself  and  his  article  a large  measure 
of  success,  bounded  only  by  the  possibilities  of  time  and  the  com- 
mercial area  of  the  world. 


Philadelphia. 


John  O.  Powers. 


THE  DISTRIBUTION  OF  STOCKHOLDINGS  IN 
AMERICAN  RAILWAYS1 


In  a study  of  the  distribution  of  stockholdings  in  American 
railways  we  touch  upon  a question  which,  as  associated  with  the 
fundamental  institution  of  private  property,  has  a most  important 
bearing  upon  our  social,  economic  and  political  life.  The  ownership 
of  property  tends,  above  all,  to  create  a sentiment  favoring  conserva- 
tism. The  greater  the  number  of  individuals  participating  in  the 
ownership  of  property,  the  greater  will  be  the  number  interested 
in  promoting  the  safety  and  conservatism  of  property,  and  the 
advancement  of  industry.  The  effect  of  the  diffused  ownership  of 
stockholdings,  for  example,  upon  our  economic  life  may  be  readily 
observed.  Being  owners  in  a great  enterprise,  the  large  number  of 
smaller  holders  are  thus  prompted  by  self-interest  to  view  economic 
questions  from  the  standpoint  of  an  employer.  In  the  industrial 
struggles  between  labor  and  capital,  a widely  diffused  ownership  of 
stock  may  be  of  the  greatest  importance  in  molding  public  senti- 
ment with  reference  to  the  demands  of  the  contending  parties.  The 
holding  of  a single  or  a few  shares  in  a large  corporation  may  not 
only  cause  the  holder  to  feel  a greater  interest  in  the  welfare  of  his 
particular  concern,  but  may  cause  him,  in  a general  way,  to  observe 
and  feel  as  a member  of  the  employing  class.  Moreover,  a large 
corporation  by  widely  distributing  the  ownership  of  its  stocks  and 
bonds,  especially  if  it  be  among  an  influential  class,  will  thereby 
safeguard  its  interests  and  privileges  through  an  increased  political 
constituency.  Railways,  for  example,  whose  stocks  and  bonds  are 
held  by  thousands  of  holders  may  be  expected  to  exert  a powerful 
influence  in  the  legislatures  of  their  respective  states. 

These  and  other  considerations  point  to  the  conclusion  that  the 
economic  and  social  effects,  resulting  either  from  a wide  diffusion 
or  a high  degree  of  concentration  in  the  ownership  of  stockholdings, 
are  both  numerous  and  important.  Yet,  significant  as  a study  of  the 

1 The  present  study  is  confined  to  an  examination  of  the  distribution  of  capital  stock 
only,  and  takes  no  account  of  the  funded  debt.  Moreover,  the  study  is  based  primarily  upon 
the  data  furnished  by  the  latest  available  railroad  commission  reports,  and  does  not  consider 
the  readjustments  in  the  capital  stock,  or  changes  in  the  number  of  stockholders,  which  have 
occurred  since  the  issuing  of  these  reports. 

[475] 


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distribution  of  stockholdings  in  American  railways  may  be  in  this 
respect,  we  find  ourselves  confronted  with  all  the  difficulties  which 
beset  the  question  of  the  distribution  of  wealth  in  general.  As  Pro- 
fessor Mayo-Smith  has  'remarked  : “Almost  all  statistical  analyses 
of  the  actual  distribution  of  wealth  break  down  on  account  of  the 
imperfections  of  the  statistics.”2  And  it  is  especially  in  the  study 
of  the  distribution  of  railway  stock,  probably  more  so  than  in  the 
case  of  wealth  in  general,  that  we  find  the  materials  at  our  disposal 
not  only  very  incomplete,  but  also  extremely  limited.  In  fact,  reli- 
ance had  to  be  placed  almost  wholly  upon  individual  statements 
concerning  certain  particular  roads,  and  upon  the  statements  of  the 
amount  of  capital  stock  issued  and  outstanding,  and  the  total  number 
of  stockholders  for  the  various  roads  at  the  date  of  the  last  election 
of  the  directors,  as  collected  under  the  authority  of  the  railway  com- 
missioners of  the  various  states.  This  latter  source,  however,  is  by 
no  means  complete.  In  many  states,  especially  the  Southern,  with 
the  exception  of  Alabama,  Louisiana,  and  Virginia,  the  railway  com- 
mission reports  furnish  no  information  whatever  on  the  subject;  and 
in  no  case  do  the  reports  give  the  exact  distribution  of  the  capital 
stock  among  the  holders.  This  absence  of  conclusive  material  deter- 
mines largely  the  mode  of  treatment  to  be  followed,  and  fixes  in  a 
general  way  the  limits  of  the  conclusions.  The  attempt  is  made, 
therefore,  to  present,  briefly,  the  distribution  of  stockholdings  in 
those  few  railways  where  the  evidence  is  direct  and  conclusive ; and 
to  present  tables  showing  respectively  those  important  railways 
whose  stock  is  owned  by  a comparatively  large  number  of  stock- 
holders, those  where  concentration  is  apparent ; and,  lastly,  those 
important  railways  whose  stock  is  concentrated  in  the  hands  of  a few 
holders.  Despite  the  many  defects  in  the  materials,  it  is  believed  that 
a compilation  of  the  data  presented  in  the  railway  commission  reports, 
if  supplemented  by  such  considerations  as  are  necessarily  involved 
in  a statistical  treatment  of  this  kind,  cannot  fail  to  add  something 
to  our  knowledge  of  the  subject  under  discussion. 

Passing  now  to  an  examination  of  specific  railways,  we  find  that 
the  Illinois  Central  stands  out  most  prominently  in  the  effort  to  dif- 
fuse the  ownership  of  its  stock  among  small  holders,  especially  its 
employees.  According  to  Mr.  Cressey,  “No  other  railroad  has 
adopted  a plan  to  this  purpose  approaching  in  extent  or  liberality 

2 Statistics  and  Economics,  p.  437. 


[476] 


The  Distribution  of  Stockholdings  in  American  Railways  65 

that  devised  by  President  Stuyvesant  Fish.  Other  roads,  however, 
have  made  commendable  efforts  in  this  direction,  and  among  these 
may  be  mentioned  the  Chicago  Great  Western  System.3  Of  the 
6,526  stockholders  of  the  Illinois  Central  in  1900,  705  were  officers 
and  employees  of  the  company,  other  than  directors,  and  held  stock 
to  the  amount  of  2,554  shares.  Three  thousand  eight  hundred  and 
sixty-eight  of  these  stockholders,  owning  346,207  shares,  were  resi- 
dents of  the  United  States ; 2,543,  owning  198,616  shares,  were  resi- 
dents of  Great  Britain,  and  1 1 5,  owning  55,125  shares,  were  residents 
elsewhere.  Excluding  one  large  block  of  40,000  shares  held  by 
a Dutch  syndicate  for  thirty  years,  and  itself  divided  among  hun- 
dreds of  holders,  the  average  number  of  shares  per  holder  is  eighty- 
five  and  one-half.  According  to  the  books  of  the  company  there 
are  “5  holdings  of  5,000  shares  or  over;  85  of  1,000  shares  or  over; 
93  of  500  shares  or  over ; 694  of  less  than  500,  but  more  than 
100;  455  of  exactly  100  shares  each,  and  5,194  of  less  than  100 
shares.”4  Approximately  thus  80  per  cent  of  the  stockholders  own 
less  than  one  hundred  shares  each,  and  the  fact  is  emphasized  that 
it  is  the  5,194  small  stockholders  who  own  by  far  the  majority  of  the 
stock. 

Equally  favorable  appears  to  be  the  distribution  of  stock  in  the 
Boston  and  Albany  and  the  Boston  and  Maine  railways.  The 
capital  stock  of  the  Boston  and  Albany,  aggregating  $25,000,000, 
is  distributed  among  8,434  stockholders.  The  largest  of  these  stock- 
holders owns  but  3,000  shares,  while  at  least  4,645  holders,  or  54 
per  cent  of  the  total  number,  hold  less  than  ten  shares  each.5  As 
regards  the  Boston  and  Maine  Railroad,  the  annual  report  for  1899- 
1900  places  the  number  of  shares  of  that  company  at  250,345,  and 
the  number  of  stockholders  at  7,148.  Of  this  number  of  stockholders 
4,575,  residing  in  Massachusetts,  owned  124,030  shares;  1,515,  resid- 
ing in  New  Hampshire,  owned  29,212  shares ; 599,  residing  in  Maine, 
owned  18,349  shares;  459,  residing  elsewhere,  owned  60,678  shares, 
while  18,076  shares  of  common  stock  were  owned  by  the  company 
itself.6  From  this  report  it  also  appears  that  approximately  7 per 
cent  of  the  largest  stockholders  of  the  company  owned  26  per  cent 
of  the  stock. 

3 “Railroad  Employees  as  Shareholders.”  Outlook,  62:  122. 

4 United  States  Industrial  Commission.  Vol.  IV,  p.  326. 

5 United  States  Industrial  Commission.  Vol.  XIX,  p.  403. 

* Annual  Report  of  the  Boston  & Maine  Railroad.  1899-1900,  p.  10. 

[477] 


66 


The  Annals  of  the  American  Academy 


Another  illustration  of  the  wide  diffusion  of  stock  ownership  in 
some  of  our  great  railways  is  afforded  in  the  Atchison,  Topeka  and 
Santa  Fe  Railway.  This  road,  the  most  important  of  the  South- 
western roads,  and  the  greatest  of  the  “independent  systems,”  has  its 
capital  stock  of  $233,468,000  distributed  among  13,147  stockholders. 
The  two  facts  according  to  Mr.  Thomas  F.  Woodlock  that  distin- 
guish this  road  from  other  large  Western  roads  are:  (1)  “That 

alone  of  all  transcontinental  lines  it  extends  from  Chicago  to  San 
Francisco,”  and  (2)  “That  there  is  no  dominant  stockholding  interest 
or  combination  of  interests  in  control  of  the  property.  . . . And 

it  is  the  only  large  system  in  the  West  that  nobody  in  particular  owns 
or  specially  controls.”  According  to  Mr.  Woodlock,  “the  ownership 
of  the  Atchison  road  became  thoroughly  scattered  in  the  reorganiza- 
tion and  afterwards.”  “I  am  credibly  informed,”  he  writes,  “that 
Messrs.  Baring  and  the  interest  known  as  the  ‘Berwind  Pool’  are  at 
present  the  only  examples  of  concentrated  ownership  in  the  com- 
pany, and  that  all  three  combined  are  a relatively  small  percentage 
of  the  whole.”7 

Directing  our  attention  next  to  an  examination  of  the  distribu- 
tion of  the  capital  stock  of  railways  other  than  those  just  consid- 
ered, reliance  had  to  be  placed  upon  the  data  furnished  by  the  latest 
available  State  Railroad  Commission  reports,  namely  those  of  1900 
and  1901.  In  the  following  four  tables  an  attempt  has  been  made  to 
group  this  data.  Table  I includes  those  important  railways  whose 
stock  is  owned  by  a large  number  of  stockholders.  Table  II  pre- 
sents those  important  railways  whose  number  of  stockholders  is  not 
unusually  small,  but  where  concentration  in  stockholding  is  apparent. 
Table  III  comprises  those  important  railways  whose  capital  stock  is 
owned  by  a comparatively  small  number  of  stockholders,  while  Table 
IV  shows  the  distribution  of  stock  in  New  England  railways  with  a 
capital  stock  of  $1,000,000  or  over. 


Table  I. 


Name  of  Railway  Company. 

Atchison,  Topeka  & Santa  Fe  

Boston  & Albany  

Boston  & Maine  

7 The  London  Economist  59,  II,  p.  1395- 

[478] 


Amount 

of 

Capital  Stock. 
$233,486,000 
25,000,000 
26,516,970 


Total  number 
of 

Shareholders. 

13,147 

8,434 

7,229 


The  Distribution  of  Stockholdings  in  American  Railways  67 


Table  I. — Continued. 


Amount 

Name  of  Railway  Company.  of 

Capital  Stock. 

Chicago  Great  Western $68,572,074 

Chicago,  Milwaukee  & St.  Paul  100,480,200 

Chicago  & Northwestern  66,227,320 

Chicago,  Rock  Island  & Pacific 59,988,260 

Cleveland,  Cincinnati,  Chicago  & St.  Louis 38,418,307 

Delaware  & Hudson  35,000,000 

Fitchburg  24,360,000 

Illinois  Central  66,000,000 

Lehigh  Valley  40,441,100 

Long  Island  12,000,000 

Louisville  & Nashville  55,000,000 

Minneapolis  & St.  Louis 10,000,000 

New  York  Central  & Hudson  River  115,000,000 

New  York,  New  Haven  & Hartford  54,685,400 

New  York,  Ontario  & Western  58,118,982 

Old  Colony  16,617,625 

Pennsylvania  Railroad  Company 204,374,850 

Pere  Marquette  28,000,000 

Union  Pacific  203,600,000 


Total  number 
of 

Shareholders. 

3,627 

5,786 

4,260 

2.934 
2,197 
3,958 

5.935 
6,526 
6,916 

646 

1,982 

448 

10,320 

9,56o 

2,056 

5,33i 

29,000 

2,098 

12,450 


Table  II. 

Name  of  Railway  Company. 

Atlantic  Coast  Line  

Buffalo,  Rochester  & Pittsburg  

Burlington,  Cedar  Rapids  & Northern  

Chesapeake  & Ohio  

Chicago,  Burlington  & Quincy 

Chicago,  St.  Paul,  Minneapolis  & Omaha  . . 

Duluth,  South  Shore  & Atlantic 

Great  Northern  

Kansas  & Colorado  Pacific  

Kansas  City,  Pittsburg  & Gulf 

Lake  Shore  & Michigan  Southern  

Minneapolis,  St.  Paul  & Sault  Ste.  Marie... 

Michigan  Central  

Missouri,  Kansas  & Texas  

The  Missouri  Pacific  

New  York,  Chicago  & St.  Louis 

Norfolk  & Western  

Southern  Pacific  


Amount 

of 

Capital  Stock. 

$34,280,500 

12,000,000 

8,887,380 

86.000. 000 
110,800,000 

34,050,126 

22.000. 000 
123,853,300 

25,498,100 

23.000. 000 

50.000. 000 

21.000. 000 
18,738,000 
72,569,200 
76,402,875 

30.000. 000 

89.000. 000 
197,832,148 


Total  number 
of 

Shareholders. 

874 

224 

325 

1,145 

616 

1,019 

350 

1,835 

156 

325 

708 

148 

563 

I,o8o 

889 

677 

1,876 

968 


[479] 


68 


The  Annals  of  the  American  Academy 


Table  II. — Continued. 


Amount 

Name  of  Railway  Company.  of 

Capital  Stock. 

St.  Louis  & San  Francisco.' $50,000,000 

St.  Louis  Southwestern  36,000,000 

Texas  & Pacific  38,760,110 

Western  New  York  & Pennsylvania  20,000,000 


Table  III. 


Amount 

Name  of  Railway  Company.  of 

Capital  Stock. 

Arkansas  & Choctaw  Railway  $15,230,000 

Chicago,  St.  Louis  & New  Orleans 10,000,000 

Cincinnati  & Northern  6,800,000 

Dubuque  & Sioux  City  10,999,600 

Eastern  Railway  Company  of  Minnesota 16,000,000 

Erie  Railroad  Company  176,000,000 

Fremont,  Elkhorn  & Missouri  Valley  36,940,000 

Kansas  City,  Fort  Scott  & Memphis 28,510,000 

Kansas  City  Southern  51,000,000 

Northern  Pacific  155,000,000 

Morgan’s  Louisiana  & Texas  Railroad  and  Steam- 
ship Company 15,000,000 

Southern  Railway  Company 180,000,000 

St.  Joseph  & Grand  Island 13,598,500 

St.  Louis,  Iron  Mountain  & Southern  25,795,055 

St.  Paul,  Minneapolis  & Manitoba  20,000,000 

The  New  England  Railroad  Company 25,000,000 

Wilmar  & Sioux  Falls  7,000,000 

Wisconsin  Central  30,000,000 

Yazoo  & Mississippi  Valley  6,168,400 


New  England  Railroads 
Table  IV. 


Amount 

Name  of  Railway  Company.  of 

Capital  Stock. 

Boston  & Lowell  $6,529,400 

Boston  & Providence  4,000,000 

Connecticut  River  Railroad  2,630,000 

New  Haven  & Northampton  2,460,000 

New  London  Northern  1,500,000 


Total  number 
of 

Shareholders. 

1,416 

778 

916 

176 


Total  number 
of 

Shareholders. 

6 

22 

6 

31 
6 
1 7 
8 
1 7 
15 
1 7 

6 

13 

9 

32 

69 

5i 

6 

12 

14 


Total  number 
of 

Shareholders. 

2,142 

1,668 

952 

7 

379 


[480] 


The  Distribution  of  Stockholdings  in  American  Railways  69 


Table  IV. — Continued. 


Name  of  Railway  Company. 


Providence  & Worcester 

Vermont  & Massachusetts 

Worcester,  Nashua  & Rochester  

Boston  & New  York  Air  Line  

Central  New  England 

Hartford  & Connecticut  Western  

Naugatuck  Railroad  Company  

Norwich  & Worcester  

Atlantic  & St.  Lawrence  

Concord  & Montreal  

Maine  Central  

Manchester  & Lawrence  

Northern  Railroad  Company  

Bennington  & Rutland  

Newport  & Richford  

Rutland  Railroad  

St.  Johnsbury  & Lake  Champlain  

Vermont  Valley  

Bangor  & Aroostook 

Grand  Trunk  Railway  

Portland  & Rumford  Falls  

Washington  County  Railroad  Company 


Amount 

of 

Capital  Stock. 

$3,500,000 

3,193,000 

3.099.800 
3,907,968 
6,600,000 

2.712.800 
2,000,000 
3,006,600 

5.484.000 
7,197,600 
4,975,300 
1,000,000 
3,068,400 
1,000,000 

3.200.000 
6,719,700 
3,848,500 
1,000,000 
2,178,307 

5.484.000 
1 ,000,000 

1 .999.000 


Total  number 
of 

Shareholders. 

902 

1,312 

805 

6lO 

277 

641 

463 

941 

1,647 

2,214 

824 

545 

i,i79 

8 

9 

about  600 
432 
59 

24 

1,630 

50 

27 


A glance  at  the  foregoing  tables  reveals  a striking  contrast 
between  different  railways  as  to  the  proportion  between  the  amount 
of  their  stock  and  the  number  of  their  stockholders.  From  the  evi- 
dence submitted  for  the  twenty-two  railways  included  in  Table  I, 
aggregating  $1,541,887,088  of  capital  stock,  it  appears  that  railway 
stock  is  to  a large  extent  distributed  among  a great  number  of  holders. 
Thus  the  number  of  stockholders  for  these  twenty-two  roads  is 
144,840,  and  for  the  New  England  railways  with  a capitalization  of 
$1,000,000  or  over  is  in  excess  of  20,000.  Upon  glancing  at  Table 
II,  however,  we  find  the  number  of  stockholders  comparatively  small, 
and  in  Table  III  exceedingly  small  considering  the  large  capitaliza- 
tion of  the  roads. 

Proceeding  to  a closer  analysis  of  these  tables,  we  find  that  the 
average  stockholding  for  all  the  roads  of  Table  I amounts  to  $10,646 
per  stockholder.  This  comparatively  low  average,  however,  loses 
some  of  its  significance  when  we  remember  that  seven  roads, — the 


7o 


The  Annals  of  the  American  Academy 


Atchison,  Topeka  and  Santa  Fe;  the  Union  Pacific;  Chicago,  Mil- 
waukee and  St.  Paul;  Louisville  and  Nashville;  New  York,  Ontario 
and  Western;  Chicago,  Rock  Island  and  Pacific,  and  the  Chicago 
Great  Western, — aggregating  $779,245,516  of  capital  stock,  or  over 
one-half  of  the  total  stock  of  these  twenty-two  roads,  have  an  aver- 
age stockholding  of  $18,561  per  holder. 

In  Table  II  the  concentration  becomes  much  more  marked. 
Having  a capital  stock  of  $1,180,871,739,  the  twenty-two  railroads 
of  this  table  have  a total  of  but  17,064  stockholders,  and  an  average 
stockholding  of  $69,463  per  holder.  As  in  Table  I,  however,  this 
average  partially  loses  its  significance,  since  eight  roads, — the  Chi- 
cago, Burlington  and  Quincy ; the  Chesapeake  and  Ohio ; the  Great 
Northern;  Kansas  and  Colorado  Pacific;  Minneapolis,  St.  Paul  and 
Sault  Ste  Marie ; Missouri  Pacific ; Southern  Pacific,  and  Western 
New  York  and  Pennsylvania, — with  a total  capital  stock  of  $643,- 
387,023  or  over  one-half  of  the  total  capital  stock  of  these  twenty- 
two  roads,  have  an  average  stockholding  of  $108,442.  Moreover, 
three  roads, — the  Southern  Pacific ; Chicago,  Burlington  and  Quincy, 
and  Kansas  and  Colorado  Pacific, — with  capital  stock  aggregating 
nearly  30  per  cent  of  the  total  stock  represented  in  this  table,  have 
average  stockholdings  of  $185,777,  $! 79,871,  and  $163,577  respec- 
tively. 

If,  for  the  purpose  of  comparison,  we  look  now  at  Table  III, 
we  note  a still  greater  contrast  than  exists  between  the  railways  of 
Tables  I and  II.  The  nineteen  important  roads  represented  here 
have  their  aggregate  stock  of  $829,041,555  distributed  among  but 
357  stockholders,  having  thus  an  average  holding  of  $2,322,245  per 
holder.  Three  of  the  roads,  however, — the  Erie  Railway,  the  North- 
ern Pacific,  and  the  Southern  Railway, — with  an  aggregate  capital 
stock  of  $511,000,000,  or  five-eighths  of  the  total  capital  stock  repre- 
sented by  this  table,  have  an  average  stockholding  of  $10,872,340 
per  holder. 

It  will  doubtless  be  urged  with  reference  to  these  averages 
that,  owing  to  the  rapid  changes  in  stock  ownership,  they  have  value 
only  for  the  particular  year  for  which  they  are  compiled.  In  fact 
there  is  scarcely  any  ownership  of  property  more  transitory  than  the 
ownership  of  railway  stock.  In  this  connection  the  statistics  of  the 
New  York  Stock  Exchange  for  1901  may  be  studied  to  advantage. 
In  that  year  the  total  number  of  shares  sold  at  the  Exchange  num- 

[482] 


The  Distribution  of  Stockholdings  in  American  Railways  71 

bered  249,193,674,  representing  a par  value  of  $24,254,887,825; 
and  by  far  the  great  majority  of  these  stocks  constituted  railway 
stocks.  Indeed,  within  the  year  1901  the  total  number  of  listed 
shares  for  some  of  the  leading  railways  was  sold  from  ten  to  twenty 
times  over.  Thus  the  Milwaukee-St.  Paul  stock  was  sold  twenty 
times  over ; the  Union  Pacific  stock  twenty-one  and  one-quarter 
times ; Rock  Island  stock  thirteen  and  one-half  times ; Wabash  pre- 
ferred stock  twelve  and  one-half  times ; Atchison  stock  eleven  and 
seven-eighths  times,  and  Erie  stock  ten  times.8 

Such  a volume  of  stock  transactions  would  seem  to  indicate  that 
the  above  statistics  can  have  but  a temporary  value.  As  a matter  of 
fact,  however,  when  we  compile  statistics  for  a considerable  number 
of  railways  for  different  periods,  we  find  that  the  proportion  between 
the  amount  of  stock  and  the  number  of  holders  shows  an  increase 
in  the  average  stockholding  sufficiently  large  to  indicate  that  the 
above  tables  rather  underrate  than  overestimate  the  average  stock- 
holding in  railways  at  the  present  time.  A few  statistics  will  cor- 
roborate this  statement.  Thus  as  regards  eleven  railways  of  Table  I, 
for  which  information  could  be  found,  the  capital  stock  increased 
from  approximately  $650,834,038  in  1890  to  $942,946,162  in  1900  or 
45  per  cent ; while  during  the  same  period  the  number  of  stockholders 
increased  from  54,928  to  75,528  or  37  per  cent.  In  other  words,  the 
average  stockholding  for  these  eleven  roads  increased  from  $11,848 
to  $12,486,  or  over  8 per  cent.  Again,  in  seventeen  of  the  twenty- 
two  railways  of  Table  I,  for  which  information  was  available,  the 
capital  stock  increased  since  1895  from  approximately  $875,296,724 
to  $1,143,512,238  or  over  32  per  cent;  the  number  of  stockholders 
increased  from  92,029  to  100,532  or  over  9 per  cent,  and  the  average 
stockholding  increased  from  $9,318  to  $11,435  or  over  22  per  cent. 
Similarly  in  Table  II,  we  find  that  eleven  railways  have  increased 
their  capital  stock  since  1890  from  $350,106,859  to  $564,251,559  or 
over  61  per  cent.  During  the  same  period  the  number  of  stock- 
holders decreased  from  20,109  to  7,980  or  over  two  and  a half  times, 
thus  increasing  the  average  stockholding  from  $17,410  to  $70,708 
or  over  four  times.  More  significant  by  far  has  been  the  increase 
•of  the  average  stockholding  of  the  railways  of  Table  III.  Since 
1890  eleven  of  these  roads  have  increased  their  capital  stock  from 
approximately  $387,419,427  to  $523,048,100  or  nearly  35  per  cent. 

* S.  S.  Pratt,  “The  Work  of  Wall  Street,”  p.  45. 

[483] 


72  The  Annals  of  the  American  Academy 

Within  the  same  period  the  number  of  stockholders  has  decreased 
from  6,215  to  239,  while  the  average  stockholding  has  increased  over 
thirty-five  times.  Despite,  therefore,  the  rapid  changes  in  stock 
ownership,  the  railways  of  the  foregoing  three  tables  show,  on  the 
whole,  a marked  tendency  towards  an  increased  average  stockhold- 
ing. The  above  tables,  if  they  err  in  any  direction,  may  be  regarded 
as  underrating  rather  than  overstating  the  average  stockholding  at 
the  present  time. 

Thus  far,  then  we  have  taken  into  account  the  average  stock- 
holding of  leading  railways  whose  capital  stock  aggregates  $3,551,- 
800,382  or  about  60  per  cent  of  the  total  railway  stock  of  the 
country.  Directing  our  attention  to  the  distribution  of  stock  of  the 
smaller  roads,  our  only  guide,  again,  consists  in  the  State  Railroad 
Commission  reports.  An  examination  of  the  latest  of  these  reports 
indicates  that  the  stock  of  the  smaller  roads  in  the  *W est  is  held  by 
comparatively  few  investors  and  that  the  stock,  on  the  whole, 
becomes  more  and  more  widely  diffused  as  we  go  Eastward,  espe- 
cially towards  the  New  England  States.  Thus  from  the  preceding 
tables  it  appears  that  the  six  principal  New  England  railways,  with 
stock  aggregating  $172,000,000,  show  the  exceedingly  large  number 
of  36,540  stockholders.  Likewise  Table  IV,  including  those  New 
England  railways  with  stock  of  $1,000,000  or  over,  shows  an  exceed- 
ingly large  number  of  stockholders  in  view  of  the  small  capitaliza- 
tion of  the  roads.  In  short,  the  twenty-seven  railways  included  in 
this  table  have  their  aggregate  stock  of  $93,294,375  distributed 
among  20,347  stockholders.  When  to  the  railways  of  Table  IV 
are  added  the  roads  with  stock  of  less  than  $1,000,000,  the  railway 
commission  reports  of  Connecticut,  Massachusetts,  Maine  and  New 
Hampshire  show  the  total  number  of  stockholders  for  the  roads 
represented  in  these  states,  and  for  which  calculation  can  be  made, 
to  be  28,923.  The  average  stockholding  in  these  roads  for  Con- 
necticut is  placed  by  the  reports  at  approximately  $7,041.  Maine 
follows  next  with  an  average  holding  of  $5,486,  while  Massachu- 
setts and  New  Hampshire  have  the  extremely  low  averages  of 
$3,146  and  $3,451  respectively.  If  we  could  carry  our  inquiry  to  all 
the  railways  represented  in  all  the  New  England  States,  it  is  safe  to 
assume  from  the  above  calculations  that  the  total  number  of  stock- 
holders of  New  England  railways  would  be  considerably  in  excess 
of  70,000.  If,  however,  we  extend  our  inquiry  to  the  smaller  roads 

[484] 


The  Distribution  of  Stockholdings  in  American  Railways  73 

outside  of  New  England  the  average  seems  considerably  larger. 
Thus  the  average  amount  of  stock  per  holder  in  all  the  railways 
considered  by  the  reports,  and  for  which  calculation  could  be  made, 
is,  approximately,  $156,638  in  Minnesota,  $110,600  in  Louisiana,  and 
$72,320  in  Kansas.  Of  the  remaining  states  for  which  calculations 
were  possible,  the  greatest  average  stockholding  ($49,484)  is  shown 
in  Arkansas.  Alabama  follows  next  with  an  average  of  approxi- 
mately $43,239,  and  then  Michigan  with  an  average  of  $33,859.  In 
New  York  the  average  stockholding  for  such  roads,  other  than  pro- 
prietary and  lesser  surface  steam  railway  companies,  is  approxi- 
mately $18,582,  and  in  Virginia  $15,849. 

If  the  averages  presented  in  the  preceding  paragraph  are  cor- 
rect, the  conclusion  suggested  is  that,  excluding  the  New  England 
railways  and  the  roads  represented  in  Table  I,  the  stock  owned  by 
the  average  holder  is  comparatively  large.  A closer  investigation 
will  reveal  the  fact,  however,  that  the  question  is  not  fully  deter- 
mined by  merely  presenting  the  average  stockholding  for  the  roads 
of  each  of  the  four  groups.  It  is  manifest  that  while  the  above 
averages  present  the  minimum  concentration  of  stock  among  the 
so-called  “stockholders,”  they  do  not  take  account  of  the  fact  that 
these  stockholders  do  not  in  all  cases  necessarily  represent  individual 
holders,  but  may  in  some  cases  represent  corporations.  In  the  first 
place,  one  railway  corporation,  itself  representing  many  stockholders, 
may  be  the  holder  of  a portion  of  the  stock  of  another  railway  com- 
pany. Or  considerable  blocks  of  such  securities  may  be  held  by 
trust  companies,  life  insurance  companies,  investment  companies, 
etc.,  which  in  turn  represent  the  investments  of  a large  number  of 
persons,  many  of  whom  belong  to  the  middle  and  poorer  classes. 
How  far  this  process  of  subdivision  must  be  carried  in  order  to 
fairly  determine  the  extent  to  which  the  population  of  the  country 
is  now  involved  in  railway  ownership,  it  is  difficult  to  judge.  Suffice 
it  to  say,  that  large  blocks  of  railway  securities  are  held  in  this  way, 
and  that  this  indirect  form  of  investment  is  rapidly  increasing. 
Thus  on  July  1,  1901,  the  general  stock  investments  of  the  trust 
companies  of  New  York  City  alone  aggregated  over  $209,000,000. 
Even  in  the  case  of  savings  banks,  whose  investment  powers  have 
been  very  carefully  safeguarded,  a change  of  policy  is  manifesting 
itself.  Since  1899,  for  example,  the  three  states  of  New  York,  Mas- 
sachusetts and  Connecticut  were  obliged,  owing  to  the  rapid  increase 

[485] 


74 


The  Annals  of  the  American  Academy 


of  the  deposits,  to  extend  the  power  of  these  institutions  to  invest  to 
a limited  degree  in  railway  securities.  While  no  available  statistics 
exist  on  this  phase  of  our  subject,  we  may  nevertheless  conclude  that 
this  subdivision  of  the  stockholdings  in  railway  securities,  especially 
when  we  remember  that  trust  companies,  investment  companies,  and 
the  like,  representing  the  merging  together  of  a large  number  of 
small  and  separately  owned  capitals,  do  actually  hold  large  blocks 
of  railway  shares,  points  unmistakably  to  a very  widely  diffused 
ownership.  Nothing  more  strikingly  illustrates  the  extent  to  which 
this  diffused  ownership  may  exist  in  some  of  our  leading  railways, 
than  the  statement  of  Mr.  J.  J.  Hill  to  the  effect  that  “when  the 
Chicago,  Burlington  and  Quincy  Railroad  was  taken  into  the 
Northern  Securities  Company  some  2,000  of  its  18,000  stockholders 
owned  five  shares  each  and  300  owned  one  share  each.”9  The  Eastern 
trunk  lines  were  reported  to  have  had  their  stock  distributed  among 
99,829  shareholders  in  the  year  1896,  and  the  Pennsylvania  Railroad 
Company  reported  that  40  per  cent  of  its  shareholders  were  women.10 

One  other  exception  to  the  above  averages  is  pertinent  to  our 
discussion.  This  exception,  while  it  does  not  in  the  least  disprove 
the  wide  diffusion  of.  stock  ownership  indicated  by  the  foregoing 
process  of  subdivision,  does  tend  to  show,  on  the  contrary,  a 
large  degree  of  concentration  of  stock  in  individual  hands.  To  rely 
merely  upon  the  preceding  averages,  it  is  clear,  would  prove  inade- 
quate for  our  purpose,  since  they  do  not  afford  an  exact  criterion  of 
the  actual  proportion  of  stock  held  by  the  different  shareholders. 
The  concentration  of  stock  ownership  in  individual  hands,  as  indi- 
cated by  these  averages,  becomes  all  the  greater  when  we  remember, 
first,  that  the  above  tables  fail  to  show  the  unequal  distribution  of 
the  stock  among  the  shareholders  of  any  given  road,  which  as  a 
practical  matter  of  fact  we  know  exists ; and,  secondly,  that  they 
do  not  take  cognizance  of  the  very  common  fact  that  the  well-to-do 
stockholders  of  one  railway,  though  owning  far  more  than  their 
proportionate  share,  also  own  stock  in  a large  number  of  other  roads. 

How  unequal  the  stock  of  a particular  railway  may  be  distrib- 
uted among  its  holders  is  well  illustrated  in  the  case  of  the  Fitch- 
burg and  New  England  railways.  With  the  exception  of  the  Boston 
and  Albany,  the  Boston  and  Maine,  and  the  Old  Colony  railways, 

9 Independent,  Vol.  LIV,  p.  1030. 

10  United  States  Industrial  Commission,  Vol.  IV,  p.  642. 

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The  Distribution  of  Stockholdings  in  American  Railways 


75 


the  Fitchburg  Railroad  Company  represents  the  lowest  average 
stockholding  of  the  roads  of  Table  I.  Yet  624  of  its  stockholders, 
or  those  residing  in  New  Hampshire,  own  but  $871,300  of  its 
$24,360,000  of  capital  stock;  while  1,119  °f  its  5,935  stockholders 
own  but  $1,440,000.  More  significant,  still,  is  the  instance  of  the 
inequality  of  ownership  afforded  in  the  case  of  the  New  England 
Railroad  Company.  This  company  has  its  capital  stock  of  $25,- 
000,000  distributed  among  fifty-one  stockholders,  and  with  but  three 
exceptions  shows  the  largest  average  stockholding  of  the  nineteen 
roads  included  in  Table  III.  Yet  twenty-six,  or  one-half  of  these 
fifty-one  stockholders,  according  to  the  Massachusetts  Railway  Com- 
mission report,  owned  but  $55,000  of.  the  capital  stock,  or  slightly 
more  than  the  one-five-hundredth  part  of  the  total. 

Having  thus  illustrated  the  unequal  distribution  of  stock  among 
the  owners  of  a given  road,  which  illustrations  may  be  almost  indefi- 
nitely multiplied,  we  may  now  inquire  briefly  into  the  second  point, 
the  ownership  of  stock  by  one  individual  in  several  or  many  roads. 
To  what  extent  this  multiple  ownership  exists  is  partly  indicated 
by  a comparison  of  the  directorates  of  a number  of  the  leading  rail- 
ways with  a view  of  noticing  to  what  degree  the  names  of  the 
directors  of  various  railways  duplicate  one  another.  For  the  pur- 
pose of  this  comparison,  the  names  of  the  directors  of  the  ninety 
principal  railways,  as  published  in  the  State  Railroad  Commission 
reports,  and  including  the  directors  of  all  the  roads  of  Tables  I,  II, 
and  III,  were  examined.  After  a tabular  analysis  had  been  made, 
and  all  duplications  had  been  eliminated,  it  was  found  that  the  total 
number  of  positions  in  the  directorates  of  these  ninety  roads  was 
819  and  the  total  number  of  individual  directors  393.  Of  this 
number  of  individual  directors  one  was  the  director  of  fifteen  roads, 
aggregating  over  $929,000,000  of  capital  stock,  and  one  the  director 
of  fourteen  roads  aggregating  over  $565,000,000  of  capital  stock. 
Three  were  the  directors  of  twelve  roads  each  ; one  of  these  directors 
representing  capital  stock  to  the  extent  of  $765,000,000,  and  the 
remaining  two  over  $367,000,000  each.  One  was  the  director  of 
eleven  roads  with  a total  capital  stock  of  $572,000,000 ; one  the 
director  of  ten  roads  whose  total  stock  exceeded  $656,000,000.  and 
two  the  directors  of  eight  roads  whose  stock  reached  $541,000,000 
in  the  one  case,  and  $565,000,000  in  the  other.  Of  the  remaining 
directors,  two  were  the  directors  oi  seven  roads ; eight  the  direc- 

[487] 


y6  , The  Annals  of  the  American  Academy 

tors  of  six  roads ; fourteen  the  directors  of  five  roads ; thirteen  the 
directors  of  four  roads,  and  forty  the  directors  of  three  roads.  In 
brief,  eightv-six  of  these  393  directors  represented  at  least  three  of 
these  important  roads,  and  192,  or  nearly  one-half  of  the  total  num- 
ber, were  found  to  be  directors  of  two  of  these  roads  or  more. 

But  many,  if  not  a majority  of  these  directors,  it  should  be 
remembered,  are  also  directors  of  less  important  roads.  The  extent 
to  which  this  is  true  becomes  more  apparent  when  we  review  the 
“Directory  of  Directors’'  of  some  of  our  important  cities.  Thus 
from  the  “Directory  of  Directors  in  the  City  of  New  York  for  1902,” 
we  find  the  names  of  two  stockholders,  one  of  whom  is  the  director 
of  forty-five  railways  and  the  other  of  forty-two.  Two  stockholders 
are  cited  who  are  directors  of  thirty-seven  and  thirty-five  roads 
respectively ; two  others  who  are  directors  of  twenty-eight  and 
twenty-two  roads ; two  who  are  directors  of  twenty-one  roads  each, 
and  two  who  are  directors  of  twenty  roads.  In  short,  we  find  nine 
stockholders  mentioned  in  this  directory  who  are  directors  of  twenty 
railways  or  more;  fifteen  who  are  directors  of  sixteen  railways  or 
more ; thirty-four  who  are  directors  of  from  ten  to  fifteen  roads, 
and  forty-eight  who  are  directors  of  seven  roads  or  over.  Similarly 
the  “Directory  of  Directors  in  the  City  of  Chicago  for  1902”  includes, 
as  distinct  from  the  above-mentioned  directors,  the  names  of  three 
stockholders  who  are  directors  of  twenty-five,  eighteen  and  fifteen 
railways  respectively,  and  the  names  of  fifteen  who  are  directors  of 
from  five  to  ten  roads.  In  both  directories  almost  innumerable  stock- 
holders are  mentioned  who  are  directors  of  from  two  to  five  roads. 

„ How  much  greater  the  extent  of  this  multiple  ownership  is,  becomes 
more  apparent  when  we  reflect  that  the  above  figures  represent  the 
directors  of  but  two  of  our  leading  cities,  and  that  many  of  these 
stockholders  are  also  owners  in  other  railways  without  being  mem- 
bers of  their  directorates. 

In  the  foregoing  paragraphs  we  have  reviewed,  as  briefly  as  the 
subject  permits,  some  of  the  considerations  which  assist  us  in  arriv- 
ing at  some  conclusion  with  reference  to  our  subject.  Apart  from 
any  further  details  the  general  results  may  be  summed  up  as  follows  r 

In  the  first  place,  from  the  evidence  submitted  it  appears  that 
railway  stock  is  to  a large  extent  owned  by  a great  number  of 
holders  scattered  throughout  the  country,  and  representing  every 

[488] 


The  Distribution  of  Stockholdings  in  American  Railways  77 

stratum  of  society.  The  Illinois  Central,  we  saw,  stood  out  con- 
spicuously in  its  attempt  to  extend  the  ownership  of  stock  to  its 
employees.  The  Boston  and  Albany  and  the  Boston  and  Maine 
railroads  likewise  had  their  stock  distributed  almost  entirely  among 
small  holders.  The  Pennsylvania  Railroad  has  its  capital  stock  of 
$204,000,000  distributed  among  29,000  individual  stockholders,11  a 
greater  number,  it  is  said,  than  exists  in  any  other  company  in  the 
world  except  the  United  States  Steel  Corporation.  With  reference 
to  the  New  England  railways,  we  noted  that  the  stock  was  distributed 
among  at  least  70,000  stockholders,  while  the  total  number  of  share- 
holders for  the  roads  of  Table  I exceeded  144,000.  Recognizing 
that  some  of  these  stockholders  may  in  turn  represent  corporations, 
it  becomes  apparent  that  in  some  of  our  great  railways  the  number 
of  small  individual  owners  is  exceedingly  large.  Indeed,  it  has  been 
estimated  bv  Mr.  George  B.  Blanchard  that  the  total  number  of 
holders  of  railway  stock  reaches  950,000,  and  that  the  total  number 
of  stockholders  and  bondholders  combined  approximates  i,25o,ooo.12 

Secondly,  in  accordance  with  the  statistics  presented,  we  have 
determined  the  average  stockholding  per  holder  of  railways  aggre- 
gating approximately  $3,822,214,000  or  nearly  65  per  cent  of  the 
total  railway  stock  of  the  country.  A survey  of  the  smaller  roads 
showed,  that  outside  of  the  New  England  States,  the  average  stock- 
holding was  comparatively  large,  ranging  from  a maximum  of 
$156,638  in  Minnesota  to  a minimum  of  $15,849  in  Virginia.  With 
reference  to  the  more  important  railways,  we  noted  that  the  average 
stockholding  for  twenty-two  of  these  roads,  representing  $1,541,- 
887,088,  was  $10,646.  In  twenty-two  of  these  roads,  aggregating 
$1,180,871,739  of  stock,  the  average  stockholding  was  $69,463; 
while  in  nineteen  roads,  representing  a capital  stock  of  $829,041,555, 
the  average  stockholding  reached  $2,322,245.  By  regrouping  these 
railways,  however,  it  was  found  that  over  one-half  of  the  total 
capital  stock  of  the  first  group  is  held  in  average  holdings  of 
$18,561  ; that  over  55  per  cent  of  the  total  capital  stock  of  the  second 
group  is  held  in  average  holdings  of  $108,000,  and  that  five-eighths 
of  the  total  capital  stock  of  the  third  group  is  held  in  average  hold- 
ings of  $10,872,340. 

These  averages,  it  is  true,  are  modified  by  the  fact  that  as 


11  Fifty-sixth  Annual  Report  of  the  Pennsylvania  Railroad  Co.,  p.  26. 

12  United  States  Industrial  Commission,  Vol.  IV,  p.  642. 


[489] 


yS  The  Annals  of  the  American  Academy 

several  small  corporations  become  financially  interested  in,  or  are 
merged  into  a larger  railway  corporation,  the  number  of  small 
stockholders  may  thereby  be  increased  many  times.  But  the  effect 
of  this  increase  upon  a wider  diffusion  of  railway  stock,  it  is  believed, 
is  more  than  neutralized  by  the  counter-tendency  of  well-to-do  indi- 
vidual stockholders  to  acquire  stock  in  a large  number  of  such  under- 
takings. Indeed,  we  have  seen  that  this  multiple  ownership  on  the 
part  of  individual  stockholders  exists  to  an  exceedingly  large  extent. 
If  we  recall,  furthermore,  that  the  average  stockholding  for  the 
roads  of  the  first  three  tables  has  shown  a decided  tendency  to 
increase,  and  that  great  extremes  of  stockownership  exist  even  in 
most  of  the  roads  of  Table  I,  we  may  conclude  with  a rough  degree 
of  cfccuracy  that  the  above  tables  present,  on  the  whole,  a far  too 
conservative  view  of  the  actual  concentration  of  railway  stock  in 
individual  hands  at  the  present  time.  Concentration  certainly  does 
manifest  itself  strongly  in  the  roads  included  in  Tables  II  and  III. 
And,  if  the  composition  of  the  comparatively  low  averages  of  the 
railways  of  Table  I could  be  ascertained,  to  see  whether  they  are 
made  up  of  great  extremes  or  not,  it  seems  probable,  from  the  above 
considerations,  that  by  far  the  majority  of  the  large  number  of 
stockholders  cited  for  these  roads  represent  small  investors,  and  that 
the  majority  of  the  stock,  in  many,  if  not  in  a majority  of  these 
roads,  is  held  by  a comparatively  few  large  holders. 

Solomon  Huebner. 


Philadelphia. 


GROWTH  AND  MANAGEMENT  OF  AMERICAN 
AGRICULTURE 


We  are  passing  through  an  era  of  rapid  change  in  our  manufacturing 
and  commercial  industries  and  are  witnessing  the  building  up  of  huge 
industrial  combinations.  Our  whole  industrial  world  is  rapidly  assuming 
changed  form  and  proportion.  As  agriculture  is  our  basic  industry,  careful 
note  should  be  made  of  the  changes  that  are  taking  place  in  this  great  field  of 
human  industry. 

We  are  still  an  agricultural  nation.  The  total  value  of  farm  property 
in  the  United  States,  according  to  the  twelfth  census,1  is  $20,514,001,838;  an 
increase  of  28.4  per  cent  over  the  total  value  reported  in  1890.  There  are 
5,739,657  farms  in  this  country,  having  an  average  size  of  146.6  acres  each. 

What  are  the  tendencies  disclosed  by  the  census  of  1900,  in  the  different 
sections  of  our  country  with  regard  to  farm  products,  methods  employed, 
use  of  fertilizer,  size  of  farms,  ownership  or  tenancy?  What  is  the  progress 
of  the  negro  farmer?  We  shall,  in  the  following  pages,  attempt  to  organize 
and  systematize  the  facts  as  given  us  by  the  last  census,  and  to  draw  what- 
ever conclusions  this  study  may  seem  to  warrant. 

For  purposes  of  comparison  the  United  States  has  been  divided  into 
eight  groups.  The  states  composing  these  groups  show  similar  tendencies ; 
and,  to  some  extent,  each  group  has  its  own  marked  features  and  peculiari- 
ties. The  classification  chosen  is  not  the  same  as  that  used  by  the  Census 
Bureau,  but  is  the  one  which  seems  best  adapted  to  our  present  purpose. 
These  groups  are  as  follows:  Group  I,  New  England  States:  Maine,  New 
Hampshire,  Vermont,  Rhode  Island,  Massachusetts  an'd  Connecticut.  Group 
II,  North  Atlantic  States,  not  including  New  England:  New  York,  Pennsyl- 
vania, New  Jersey,  Delaware  and  Maryland.  Group  III,  North  Central 
States:  Ohio,  Michigan,  Indiana,  Illinois  and  Wisconsin.  Group  IV,  Mis- 
sissippi Valley  States : North  and  South  Dakota,  Iowa,  Minnesota,  Kansas, 
Nebraska,  Missouri  and  Oklahoma.  Group  V,  Southern  States,  not  includ- 
ing the  Cotton  Belt:  North  Carolina,  Virginia,  West  Virginia,  Kentucky, 
Tennessee  and  Arkansas.  Group  VI,  the  Cotton  Belt:  South  Carolina, 
Georgia,  Florida,  Alabama,  Mississippi  and  Louisiana.  Group  VII,  Rocky 
Mountain  States  and  Texas:  Montana,  Utah,  Wyoming,  Colorado,  Nevada, 
Arizona,  New  Mexico  and  Texas.  Group  VIII,  Pacific  Coast : California, 
Oregon,  Washington  and  Idaho. 

Characteristic  features  of  Each  Group. — Groups  I and  VII  represent 
the  two  extremes  of  agriculture  in  the  United  States, — dairying,  market 
gardening  and  raising  of  small  fruits  on  the  one  hand,  and  grazing  on  the 
other. 

The  most  striking  feature  of  the  New  England  group  is  the  marked 

1 The  statistics  given  herein  are  taken  from  the  Bulletin  of  the  Twelfth  Census. 


So 


The  Annals  of  the  American  Academy 


decrease  in  the  acreage  of  improved  farm  land  during  the  last  twenty  years, 
and  particularly  during  the  last  ten  years.  We  find  a gradual  decrease  in 
the  total  amount  of  the  cereals  raised  during  the  last  fifty  years.  For 
example,  Massachusetts  in  1859  raised  119,783  bushels  of  wheat;  in  1899  only 
1,750  bushels  were  raised.  ' In  1849,  2,345,490  bushels  of  corn  were  raised  in 
that  state;  in  1899,  1,539,980  bushels.  A corresponding  increase  in  dairy 
farming,  market  gardening  and  horticulture  is  found.  In  1900,  the  principal 
source  of  income  of  45.8  per  cent  of  the  total  farm  acreage  in  Massachusetts, 
was  dairy  farming ; in  Maine,  28.4  per  cent.-  The  raising  of  hay,  forage,  and 
the  cereals  is  chiefly  incidental  to  the  dairy  farming  and  live  stock  indus- 
tries. The  amount  of  milk  produced  in  these  states  shows  a great  increase ; 
but  the  amount  of  butter  and  cheese  produced  on  the  farms  has,  in  general, 
decreased.  There  has  been  a transfer  of  these  industries  to  the  factories  and 
creameries.  The  growth  of  the  cities  has  greatly  increased  the  demand  for 
milk  and  cream. 

We  find  that  Western  competition  has  gradually  forced  the  farmers  of 
this  section  to  abandon  the  raising  of  cereals  and  of  live  stock  for  slaughter ; 
and  has  caused  them  to  devote  their  energies  to  the  production  of  such 
products  as  milk,  small  fruits,  vegetables  and  poultry  for  the  consumption 
of  the  town  and  city  population  of  New  England.  Census  Bulletin,  No.  104, 
gives  an  instructive  comparison  regarding  the  income  derived  from  animal 
products  in  Arizona  and  Connecticut.  In  Connecticut,  in  1899,  of  the  total 
value  of  animal  products,  60.9  per  cent  was  dairy  produce;  17.3  per  cent 
animals  sold  and  slaughtered ; 21.5  per  cent  poultry  and  eggs. 

In  Arizona,  the  percentages  were  respectively  12  per  cent,  70.9  per  cent 
and  6.1  per  cent. 

From  1870  to  1890,  there  was  a steady  decrease  in  the  value  of  land, 
improvements  and  buildings.  From  1890  to  1900,  however,  a slight  increase 
was  found.  Maine  is  an  exception  to  the  last  statement,  and  it  is  worthy 
of  notice  that  the  northern  portion  of  this  state  is  still  largely  devoted  to 
general  agriculture. 

Group  II  seems  to  be  progressing  toward  dairy  farming  and  market 
gardening,  but  it  is  not  as  far  advanced  as  the  New  England  States.  New 
Jersey,  owing  to  its  proximity  to  New  York  City,  has  developed  market 
gardening  to  a considerable  degree.  Vegetables  are  the  principal  source  of 
income  of  14  per  cent  of  the  farm  acreage  of  this  state.  Maryland  devotes 
a considerable  portion  of  her  farm  land  to  market  gardening.  The  value 
of  farm  land,  improvements  and  buildings  in  Pennsylvania,  New  York  and 
Delaware  has  declined  each  decade  since  1870;  while  that  of  Maryland  has 
increased  since  1880,  and  that  of  New  Jersey  since  1890.  This  certainly 
seems  to  point  toward  dairying  and  market  gardening  as  the  future  indus- 
tries for  the  farmers  of  these  five  states.  There  has,  however,  been  an 
increase  in  the  acreage  devoted  to  corn  and  wheat  since  1889.  We  find  a 
fairly  constant  decrease  since  1850  in  the  number  of  sheep,  and  an  increase 
in  the  number  of  dairy  cows  and  horses.  These  states  show  a slight  decrease 
in  the  percentage  of  improved  land.  The  greatest  decrease,  5.7  per  cent,  is 
found  in  New  York. 


[492] 


Growth  and  Management  of  American  Agriculture 


81 


Live  stock,  hay  and  grain  form  the  principal  source  of  income  of  a large 
percentage  of  farm  acreage  of  Group  III.  In  Wisconsin,  dairy  farming  is  an 
important  industry.  Michigan  contributes  36.5  per  cent  of  the  total  acreage 
devoted  to  the  raising  of  sugar  beets.  The  value  of  farm  land,  improvements 
and  buildings  has  increased  rapidly,  during  the  last  decade,  in  Illinois  and 
Wisconsin,  slowly  in  Indiana  and  Michigan,  and  has  slightly  decreased  in 
Ohio. 

The  acreage  devoted  to  corn  shows  a considerable  increase  in  each, 
ranging  from  20  per  cent  in  Ohio  to  50.9  per  cent  in  Michigan.  Illinois 
devoted  in  1899,  10,266,335  acres  to  the  cultivation  of  corn,  from  which 
398,149,140  bushels  were  obtained.  This  is  an  increase  of  108,000,000  bushels 
over  the  crop  of  1889,  and  73,000,000  bushels  more  than  obtained  in  1879. 
The  number  of  bushels  of  wheat  produced  in  each  state  of  this  section  has 
decreased  steadily  since  1879,  with  the  exception  of  Ohio,  in  which  state  an 
increase  is  shown  since  1889. 

The  number  of  dairy  cows  reported  is  less  than  in  1889  in  Ohio,  Indiana 
and  Illinois.  Wisconsin  and  Michigan  show  an  increase.  The  increase  in  the 
production  of  milk  varies  from  24.5  per  cent  in  Illinois  to  55.5  per  cent  in 
Wisconsin.  The  percentage  of  improved  land  is  about  the  same  as  in  1890. 
Wisconsin  only  shows  a decrease. 

This  group  of  states  shows  no  very  decided  changes  during  the  past 
decade.  The  total  value  of  farm  property  has  increased  rapidly  during  this 
period,  except  in  Ohio,  where  the  increase  is  very  slight.  It  is  not  likely 
that  these  states  are  to  be  driven  from  the  extensive  production  of  the 
cereals. 

Group  IV  is  developing  very  rapidly,  the  value  of  farms  and  farm 
products  is  increasing  at  a rapid  pace.  During  the  last  decade,  the  value  of 
farm  land,  improvements  and  building  has  increased  9 7 per  cent  in  Min- 
nesota, 163.9  per  cent  in  North  Dakota,  104.8  per  cent  in  South  Dakota, 
75  per  cent  in  Iowa,  43.6  per  cent  in  Nebraska,  15  per  cent  in  Kansas,  34.9  per 
cent  in  Missouri,  and  about  fourteen  times  in  Oklahoma.  During  the  same 
period,  the  gain  in  the  United  States  was  25.6  per  cent. 

The  amount  of  corn  and  wheat  produced  is  increasing  in  every  state. 
Minnesota  and  North  Dakota  show  a large  increase  in  the  amount  of  wheat. 
In  1889,  Minnesota  produced  52,300,247  bushels  of  wheat,  and  North  Dakota 
26,403,365  bushels;  in  1899,  95,278,660  and  59,888,817  respectively.  Iowa 
raised  383,453,190  bushels  of  corn  in  1899,  an  increase  of  70,000,000  bushels 
over  that  raised  in  1889. 

The  live  stock  industry  has  experienced  a steady  growth  during  the 
past  forty  years.  In  Iowa  and  Missouri  the  increase  during  the  last  ten 
years  is  very  slight,  and  we  shall  not  expect  any  great  increase  in  the  near 
future  in  these  two  states. 

All  the  states  in  Group  V show  a steady  increase  in  the  total  value  of 
farm  property,  and  land,  improvements  and  buildings ; but  the  percentage  is 
not  as  great  as  that  of  the  entire  United  States.  Live  stock,  hay  and  grain 
are  very  important  products  in  these  states.  Cotton  is  an  important  crop 
in  North  Carolina  and  Arkansas;  tobacco  in  Virginia  and  Kentucky.  The 

[493] 


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number  of  horses  and  mules  reported  show  a marked  increase  since  1870. 
This  section  of  the  country  is  devoted  to  general  farming.  Conditions  seem 
to  be  gradually,  but  surely,  improving. 

Florida  is  grouped  with  the  cotton  producing  states,  although  it  is  not  as 
distinctively  a cotton  growing  state  as  are  the  other  five  states.  In  Alabama 
54  per  cent  of  the  farm  acreage  of  the  state  produces  cotton  as  its  principal 
crop;  in  Georgia,  62.5  per  cent;  in  Louisiana,  51.7  per  cent;  in  Mississippi, 
58.8  per  cent ; in  South  Carolina,  65.4  per  cent,  and  in  Florida,  19.2  per  cent. 

With  the  exception  of  Florida,  which  shows  a decrease  since  1890,  these 
states  show  a steady  and  rapid  increase  in  the  total  value  of  farm  property, 
and  in  the  value  of  land,  improvements  and  buildings.  This  period  extends 
from  1870  to  the  present  time.  For  example,  in  Louisiana,  during  the  period 
of  1890-1900,  the  total  value  of  farm  property  increased  $88,089,901,  or  79.8 
per  cent.  The  increase  in  the  United  States  during  that  period  was  28.4 
per  cent. 

In  Group  VII  we  find  the  live  stock  industry  predominant.  This  is  the 
great  grazing  region.  Live  stock  is  the  principal  source  of  income  for  80.6 
per  cent  of  the  total  acreage  of  Montana;  60.1  per  cent  of  Utah;  90.1  per  cent 
of  Wyoming;  64.4  per  cent  of  Colorado;  81.3  per  cent  of  Nevada;  83  per  cent 
of  Arizona ; 84.9  per  cent  of  New  Mexico,  and  71.7  per  cent  of  Texas. 

The  number  of  “other  neat  animals”  reported  in  1900  shows  an  increase 
over  1890  in  each  state  of  this  group  except  Wyoming.  The  number  of  sheep- 
raised  has  also  increased  in  each  state  except  Texas,  which  shows  a decrease 
from  3,454,858,  in  1890,  to  1,439,940,  in  1900.  Wyoming  reports  3,327,185 
sheep  in  1900,  an  increase  of  about  four  times  over  that  of  1890 ; Colorado* 
1,352,823,  or  double  that  of  1890;  New  Mexico,  3,333,743,  about  two  and  a half 
times  the  number  reported  in  1890;  Utah,  2,553,134,  double  that  of  1890; 
Montana,  4,215,214,  also  double  that  reported  in  1890.  These  five  states  and 
Texas  report  16,222,039  sheep  in  1900,  or  about  41  per  cent  of  the  total 
number  reported  in  the  United  States.  As  the  total  number  of  sheep  reported 
in  the  United  States  only  shows  an  increase  of  11.1  per  cent  in  the  period 
1890-1900,  we  see  what  an  enormous  transfer  of  the  sheep-raising  industry 
has  taken  place.  Nearly  all  of  the  Eastern  States  show  a marked  decline 
in  this  industry.  Texas  reports  8,567,173  “other  neat  animals,”  or  about 
one-sixth  of  the  total  number  reported  in  the  United  States.  Colorado- 
reports  1,333,202. 

The  percentage  of  improved  land  in  this  section  is,  of  course,  small, 
ranging  from  25.1  per  cent  in  Utah,  to  6.4  per  cent  in  New  Mexico.  The 
acreage  of  unimproved  land  has  increased  enormously  during  the  last  ten 
years ; and,  while  the  amount  of  improved  land  has  increased,  the  percentage 
shows  a large  decrease. 

In  Group  VIII,  the  value  of  all  kinds  of  farm  property  has  increased' 
very  rapidly  during  the  last  ten  years,  except  in  the  State  of  California.  The 
character  of  the  products  of  this  group  is  similar  to  that  of  Group  IV. 
Washington  and  Idaho  show  large  increases  in  the  amount  of  wheat  pro- 
duced. Washington  reported  21,187,527  bushels  of  wheat  in  1899;  6,345,426, 
in  1889.  California  reports  37.4  per  cent  of  the  entire  acreage  of  sugar 

[494] 


Growth  and  Management  of  American  Agriculture  83 


beets.  With  regard  to  the  number  of  sheep,  the  same  tendency  is  observed 
as  in  Group  VII ; the  northern  states,  Washington  and  Idaho,  show  a large 
increase,  while  California  reports  a considerable  decrease. 

The  Number  and  Size  of  Farms. — One  hundred,  or  even  fifty  years  ago, 
the  farm  was  almost  a self-contained  unit.  It  consumed  little  except  what  it 
produced.  The  farmer  made  his  own  clothes,  shoes,  cheese,  butter  and 
candles ; he  was  his  own  carpenter,  blacksmith  and  wheelwright.  These 
industries  have  been  appropriated,  with  the  exception  in  some  cases  of  butter 
making,  by  the  factories.  The  farmer  is  relieved  from  almost  all  kinds  of 
transforming  work.  The  effect  of  all  this  is  to  make  him  more  dependent. 
He  must  buy  more  and  sell  more.  He  must  co-operate  with  many  other 
workers  of  different  trades  and  occupations.  Farming  is  now  a strictly  com- 
petitive business,  in  a market  which  is  nearly  world-wide.  How  is  this 
change  to  effect  the  size  and  management  of  our  farms?  Is  the  tendency 
toward  combination  and  consolidation,  as  in  manufacturing  and  commercial 
industries  ? Are  we  to  have  a few  owners,  and  a great  class  of  tenants  or  of 
hired  farm  laborers ; or  a large  number  of  small  owners  with  few  hired 
helpers? 

While  the  census  returns  will  not  give  us  any  definite  answer  to  these 
questions,  a study  of  the  different  sections  of  the  United  States  may  throw 
some  light  on  the  problem.  Farming  is  subject  to  the  law  of  diminishing 
returns.  The  limit  to  the  amount  of  capital  which  may  be  profitably  utilized 
on  a given  space  of  ground  is  soon  reached.  This  limit  is  a variable  depend- 
ing upon  many  different  factors ; for  example,  the  quality  of  the  land,  the 
presence  or  absence  of  new  land,  and  the  methods  of  transportation.  Farm- 
ing does  not,  in  its  present  state,  admit  of  an  extreme  division  of  labor.  The 
exact  time  of  beginning  and  quitting  work  cannot  be  regulated  as  in  manu- 
facturing. The  quantity  of  work  to  be  done  varies  greatly  with  the  seasons. 
This  is  not  true  of  dairying ; but  the  inability  to  obtain  help  at  the  proper 
time  has,  in  some  instances,  prevented  extreme  specialization  of  crops.  This 
furnishes  one  of  the  difficult  problems  of  our  great  wheat-growing  sections. 
Farming,  to  a high  degree,  requires  that  personal  attention  and  care  which 
is  ordinarily  not  given  by  the  wage-earner ; but  is  only  given  by  those  who 
receive  a share  in  the  profits  of  the  farm.  All  these  conditions  show  farm- 
ing to  be  a peculiar  industry ; tendencies  in  agriculture  and  tendencies  in 
manufacturing  are  not  likely  to  follow  parallel  lines  of  development. 

The  number  of  farms  in  the  United  States  has  increased  steadily  since 
1850.  The  total  acreage  has  also  increased  throughout  the  same  period. 
The  average  size  of  each  farm  decreased  up  to  1880 ; but  has  increased  since 
that  date. 

In  New  England,  the  greatest  number  of  farms  was  reported  in  1880. 
Each  state  reached  a maximum  at  this  time.  Since  1890,  the  number  has 
increased  in  Vermont,  Massachusetts,  Connecticut  and  New  Hampshire. 
Rhode  Island  reports  two  less  in  1900  than  1890;  and  Maine  shows  a 
decrease  of  2,714  or  4.4  per  cent  of  those  reported  in  1890.  The  average 
size  of  the  farms,  located  in  this  section  in  1890,  was  101.9  acres;  in  1900, 
104.1  acres.  But  Massachusetts  and  Rhode  Island  show  a decrease;  while  in 


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Connecticut  the  average  size  remains  as  in  1890.  It  is  in  these'  three  states 
that  market  gardening  and  the  raising  of  small  fruit  has  been  the  most 
highly  developed. 

In  Group  II,  with  the  exception  of  New  York,  each  state  reports  more 
farms  and  of  a smaller  average  size  than  in  any  previous  decade.  In  New 
York,  the  greatest  number  was  reported  in  1880.  The  number  in  1900  is,  how- 
ever, greater  than  in  1890.  The  average  size  of  farms  in  New  York  decreased 
steadily  until  1890;  but  the  last  decade  shows  an  increase.  The  average  size 
of  the  farms  in  this  section  was  98.1  acres  in  1900,  and  100.9  m 1890. 

Each  state  in  Group  III  reports  a steady  increase  in  the  number  of  farms, 
from  1850  to  1900.  The  percentage  of  improved  land  has  changed  but 
slightly  during  the  last  decade.  The  average  size  of  farms  was,  in  1900, 
102.7  acres ; in  1890,  104.6  acres.  Michigan  and  Wisconsin  show  an  increase 
in  the  average  size  during  the  last  decade. 

All  states  in  Group  IV,  except  Missouri,  show  an  increase  in  the  average 
size  of  farms.  The  exception  in  this  case  is  due  probably  to  an  increase  in 
the  number  of  negro  farmers.  In  1890,  the  average  size  was  187  acres ; in 
1900,  235.5  acres. 

Groups  V and  VI  show  very  decided  tendencies.  In  each  state  of  these 
two  groups,  the  number  of  farms  has  increased  remarkably  during  the  last 
thirty  years.  The  size  of  the  farm  has  decreased  with  corresponding  rapidity ; 
and  the  percentage  of  improved  land  shows  an  increase.  In  Louisiana,  the 
number  of  farms  has  increased  from  69,294,  in  1890,  to  115,969  in  1900; 
while  the  average  size  has  decreased  from  137.7  acres  to  95.4  acres.  In 
Virginia,  the  number  increased  from  127,600  to  167,886  during  the  same 
period,  and  the  average  size  decreased  from  149.7  acres  to  118.6  acres.  Florida 
shows  the  least  change  in  these  two  items.  The  average  size  of  farms  in 
Group  V was  100.3  acres  in  1900,  and  128.8  in  1890;  in  Group  VI,  97.5  acres 
in  1900,  and  125.9  acres  in  1890. 

However,  it  is  to  be  noted  that  in  Group  VI,  for  example,  the  average 
size  of  farms  owned  by  white  farmers  is  139.1  acres;  of  those  owned  by 
negro  farmers,  50  acres.  This  will  be  again  considered  under  a following 
head. 

The  increase  in  the  size  of  farms,  in  Group  VII,  is  extremely  large  during 
the  last  decade.  The  average  size  in  1890  was  493.9  acres;  in  1900  it  was  653.9. 
In  Wyoming,  the  increase  was  from  585.7  acres  to  1,333  acres.  This  state 
now  has  the  largest  average  acreage  per  farm.  The  five  states  in  this  section, 
which  show  a large  increase  in  the  number  of  sheep  reported,  also  show  a 
very  high  percentage  of  increase  in  the  size  of  farms.  This  is  also  true  of 
Texas. 

In  Group  VIII,  California  and  Oregon  show  a decrease  in  the  average 
size  of  each  farm ; Washington  and  Idaho  report  an  increase  for  the  last 
decade. 

The  average  size  of  a farm  in  the  United  States  was,  in  1850,  202.6  acres ; 
in  i860,  199.2;  in  1870,  153.2;  in  1880,  133.7;  in  1890,  136.5,  and  in  1900,  146.6. 
During  the  last  decade  the  increase  was  10. 1 acres. 


[496] 


Growth  and  Management  of  American  Agriculture  85 


The  increase  or  decrease  for  each  group  during  the  last  ten  years  was:* 


Increase, 

Decrease, 

Acres. 

Acres. 

Group 

I 

Group 

II  

2.8 

Group 

Ill  

IQ 

Group 

IV  

47.5 

Group 

V 

28.5 

Group 

VI  

28.4 

Group 

VII  

160.O 

Group 

VIII  

3-3 

When  the  groups  are  thus  separated,  it  can  be  seen  that  the  gain  in  the 
average  farm  acreage  is  caused,  in  a large  measure,  by  one  section ; and  that 
section  is  the  one  least  developed — the  section  where  sheep  and  stock  raising 
rather  than  tilling  the  soil  are  the  chief  agricultural  occupations.  The  increase 
found  in  Group  IV  is  chiefly  due  to  the  five  comparatively  young  states,  North 
and  South  Dakota,  Kansas,  Nebraska  and  Oklahoma.  Missouri  shows  a 
decrease,  as  mentioned  above ; while  Iowa  reports  an  increase  of  only  0.2 
acre.  The  decrease  shown  in  Groups  V and  VI  is  due  to  the  increase  in  the 
number  of  negro  farmers.  Excluding  those  states  in  which  the  agricultural 
industry  is  limited  almost  exclusively  to  the  raising  of  cattle  for  slaughter 
and  sheep,  there  was  a decrease,  not  an  increase,  in  the  average  size  of 
farms  in  the  United  States  during  the  period  1890-1900.  This  decrease  is, 
however,  very  slight,  and  is  due  to  the  change  mentioned  in  the  South.  We 
can  find  no  tendency  toward  “large-scale”  farming,  or,  as  it  is  sometimes 
called,  “bonanza”  farming. 

Fertilisers. — In  the  Northern  States,  at  least,  the  kind  of  agriculture  that 
is  pursued  in  a given  state,  can  be  judged  by  the  amount  of  fertilizer  used. 
In  Connecticut,  Rhode  Island,  Massachusetts,  Delaware,  New  Jersey  and 
Maryland,  the  states  in  which  market  gardening  has  reached  its  highest 
development,  the  average  cost  of  fertilizer  per  farm  varied,  in  1900,  from  $35 
in  Massachusetts  to  $62  in  New  Jersey.  The  states  which  are  approaching 
this  kind  of  agriculture,  namely,  New  Hampshire,  Vermont,  Maine,  New  York 
and  Pennsylvania,  report  an  annual  cost  varying  from  $12.55  in  New  Hamp- 
shire to  $21  in  Pennsylvania.  In  Group  III,  the  cost  varies  from  $2  in  Wis- 
consin to  $10  in  Ohio.  In  the  Southern  States,  there  is  a great  variation ; 
the  extremes  are  Arkansas  $1  per  farm,  and  South  Carolina  $29  per  farm. 
In  the  remaining  states  fertilizer  is  an  extremely  small  item,  except  in  Cali- 
fornia, where  the  average  cost  is  $13  per  farm. 

The  value  of  live  stock  in  present  day  farm  economy  must  not  be  over- 
looked. In  the  Eastern  States  the  raising  of  live  stock  is  carried  on  chiefly  be- 
cause of  the  value  of  manure  as  a restorer  of  fertility  to  the  land.  The  same' is, 
of  course,  true  of  dairy  farming  in  many  instances.  The  Industrial  Commission 

2 The  average  size  of  farm  in  each  group  is  obtained  by  adding  the  averages  of  the 
several  states  together  and  dividing  by  the  number  of  states  in  the  group. 

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Report  cites  the  case  of  Jefferson  County,  Wis.  In  1870,  owing  to  exclusive 
grain  farming,  the  fertility  of  the  soil  was  exhausted;  and  the  average  yield 
of  wheat  was  eight  bushels  per  acre.  Dairying  was  then  introduced ; the  yield 
has  increased  until  at  the  present  time  the  average  is  twenty-one  bushels  per 
acre.  The  value  of  such  by-products  as  straw,  cornstalks,  bran,  etc.,  is  fully 
utilized  where  live  stock  is  raised  on  the  farm.  Commercial  fertilizer  is  used 
as  an  additional  aid. 

All  vegetable  growths  obtain  their  nourishment  from  two  sources,  the 
soil  and  the  air.  The  air  is  practically  inexhaustible ; but  the  soil  needs 
renewal.  The  elements  taken  from  it  must  be  returned  to  it  in  the  shape  of 
manure  or  fertilizer.  The  future  of  agriculture  depends  upon  keeping  unim- 
paired the  fertility  of  the  land.  The  farmer  who  sells  his  wheat,  oats,  corn 
and  hay,  and  who  keeps  no  live  stock  is  simply  destroying  the  fertility  of  his 
farm.  The  detrimental  effects  are  sure  to  be  felt  sooner  or  later. 

This  country,  by  exporting  wheat  instead  of  flour,  is  losing  a valuable  feed 
product.3  The  bran  furnishes  a cheap  feed,  thus  decreasing  the  expense  of 
feeding  stock,  and  it  also  furnishes  a valuable  manure.  A double  gain 
to  our  farmers  is  lost  if  we  export  the  raw  product,  wheat.  A large  propor- 
tion of  the  coarser  products  of  a farm,  as  hay,  straw,  cornstalks,  cornmeal, 
bran,  oats,  etc.,  should  be  returned  to  that  farm  in  the  form  of  manure.  For 
like  reasons,  a country  should  not  continually  export  raw  materials.  The 
country  which  does  this  is  unnecessarily  impoverishing  itself ; it  is  impairing 
its  patrimony. 

“Experience  seems  to  have  demonstrated  that  stock  growing  and  stock 
feeding  are  essential  to  permanent  prosperity  in  farming.  The  answer  to  the 
whole  question  of  what  to  do  to  escape  from  exhausting  the  soil  fertility  is 
found  in  keeping  more  stock.  Live  stock  has  ceased  to  be  a side  issue 
in  the  organization  of  the  farm,  and  it  no  longer  serves  its  main  purpose  in 
supplying  food  for  the  farm  family,  but  has  become  the  keystone  to  the 
whole  structure  of  development  in  the  newer  farm  economy,  which  recog- 
nizes that  the  point  of  diminishing  return  to  labor  and  capital  can  be  indefi- 
nitely postponed  only  by  utilizing  live  stock  of  such  types  and  condition  as 
will  pay  for  themselves  the  year  round,  both  by  helping  to  maintain  the 
fertility  of  the  farm  and  by  contributing  to  its  cash  income.”4 

Ownership  of  Farms. — In  1880,  74.5  per  cent  of  the  farms  in  the  United 
States  were  operated  by  the  owners  or  part  owners;  in  1890,  71.6  per  cent,  and 
in  1900,  64.7  per  cent.  There  was  a decrease  of  2.9  per  cent  during  the  period 
1880-1890;  6.9  per  cent  during  1890-1900.  In  other  words,  in  1900,  three  out 
of  every  eight  farmers  in  the  United  States  were  tenants ; or  approximately 
2,000,000  farms  were  owned  by  landlords.  With  the  exception  of  one  section, 
New  England,  there  has  been  a marked  increase  in  the  percentage  of  farms 
operated  by  tenants.  In  1900,  Maine  reported  the  highest  percentage  of 
owners,  95.3  per  cent ; and  Mississippi  the  lowest  percentage,  37.6  per  cent. 
Only  three  states  report  a larger  percentage  of  owners  in  1900  than  in  1890, 
namely.  Maine,  Vermont  and  New  Hampshire.  The  average  percentage  for 

3 See  Review  of  Reviews.  May,  1902.  “The  Fallacy  of  Exporting  Wheat.” 

4 Industrial  Commission  Report.  Vol.  XIX,  pp.  160-61. 

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8 7 


New  England,  in  1900,  was  88.4  per  cent;  in  1890,  887  per  cent,  and  in  1880, 
>89.3  per  cent.  This  group  reports  the  highest  percentage  of  owners,  and  also 
shows  the  least  percentage  of  decrease  during  the  last  decade. 

The  states  in  the  Cotton  Belt  show  the  lowest  percentage  of  owners ; the 
average  in  1880  was  58  per  cent;  in  1890,  53.6  per  cent,  and  in  1900,  45.7  per 
cent.  Groups  IV  and  VII  show  the  greatest  change  in  the  ratio  of  owners 
to  tenants.  Group  VII  reported  81.2  per  cent  of  its  farms  as  operated  by 
owners  or  part  owners  in  1900,  89.1  per  cent  in  1890,  and  88.2  per  cent  in  1880. 
Group  IV  reported  74.2  per  cent  in  1900,  and  82.3  per  cent  in  1890. 

Do  these  statistics  mean  that  we  are  approaching  a condition  in  which 
a great  majority  of  our  farms  are  to  be  owned  by  absentee  landlords,  and 
operated  by  tenants  who  have  little  or  no  hope  of  eventually  becoming  farm 
owners?5  If  so,  it  is  a deplorable  tendency  and  one  worthy  of  consideration 
by  every  student  of  agricultural  conditions,  a race  of  tenant  farmers  means 
a deterioration  of  our  farming  population.  This  whole  problem  is  bound  up 
in  the  social,  economic  and  educational  problems  of  the  rural  community. 
Given  good  schools,  good  roads,  efficient  and  reasonable  steam  and  electric 
railroad  service,  good  and  wide-awake  churches,  farmers’  institutes  and  clubs 
and  the  danger  of  a permanent  tenant  class  can  never  become  acute. 

The  extremely  low  percentage  of  owners  in  the  South  is  due  to  the 
number  of  negro  tenants.  In  Mississippi,  66.2  per  cent  of  the  white  farmers 
are  owners  or  part  owners,  while  only  16. 1 per  cent  of  the  negro  farmers  are 
owners  or  part  owners.  In  South  Carolina,  the  percentages  are,  respectively, 
37.8  per  cent  and  22.2  per  cent.  In  the  United  States,  746,717  negro  farmers 
were  reported  in  1900;  of  this  number,  462,675  were  found  in  Group  VI. 
Group  VI  reports  518,177  white  farmers.  There  are  more  negro  than  white 
farmers  in  Mississippi,  South  Carolina  and  Louisiana. 

When  slavery  was  abolished,  the  wage  laborer  succeeded  the  slave 
laborer ; but  in  recent  years  a system  of  renting  small  farms  to  negroes  has 
•come  into  extensive  use.  The  negroes  are  rapidly  becoming  tenants,  and  in 
many  cases  owners.  This  is  certainly  indicative  of  an  improvement  in  the 
condition  of  the  negro;  also,  of  a case  in  which  an  increase  in  tenantry  is 
desirable. 

Farm  Machinery  and  Implements. — The  total  value  of  implements  and 
machinery  used  by  the  farmers  of  the  United  States,  was  $761,261,550  in  1900, 
$494,247,467  in  1890,  $406,520,055  in  1880.  The  gain  during  the  last  decade 
was  54  per  cent.  A comparison  of  the  cost  of  hand  and  machine  labor  has 
been  made  by  the  Department  of  Labor.  The  cost  per  acre  for  corn  is  esti- 
mated as  $3,625  for  hand,  $1,513  for  machine  labor;  for  wheat,  $3.6333  and 
$0.6892;  for  oats,  $3.7292  and  $1.0732.  The  reduction  in  labor  time  is  corre- 
spondingly great. 

What  is  the  influence  of  farm  machinery  upon  the  farmer?  It  has 
enabled  him  to  intensify  agriculture.  He  is  enabled  to  raise  more  products, 
to  do  more  work,  and  to  shorten  his  working  day.  The  number  of  laborers 
per  acre  has  not  greatly  decreased.  The  farm  laborer  is  released  from  much 

8 See  Report  of  Industrial  Commission.  Vol.  XIX,  p.  96. 

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drudgery,  and  is  allowed  more  leisure  time.  Steady  work,  if  not  too  pro- 
longed or  exhausting,  is  a boon  to  mankind;  but,  if  we  are  to  enjoy  our  lives,, 
if  we  are  to  be  something  more  than  mere  machines  for  producing  and  con- 
suming, leisure  time  must,  be  allowed  for  social  intercourse,  for  reading,  for 
games  and  other  forms  of  recreation.  The  farmer  has  been  allowed  little 
leisure  in  the  past.  If  machinery  gives  him  more  leisure,  he  must  learn  how 
to  properly  utilize  it.  Hence,  there  is  a great  necessity  now  for  good  rural 
schools  and  churches,  rural  mail  delivery  and  other  social  and  economic 
improvements. 

In  some  cases,  the  use  of  machinery  has  caused  a very  intermittent 
demand  for  farm  labor.  This  may  prove  to  be  one  of  the  factors  which  will 
prevent  extreme  specialization  of  crops. 

The  Population  of  Rural  Communities. — Is  the  population  of  the  rural 
districts  in  the  older  states  increasing  or  decreasing?  Our  cities  are  still 
growing  more  rapidly  than  the  remainder  of  the  country ; but  the  rate  of 
increase  is  slowing  up  more  rapidly  than  that  of  the  entire  United  States.  For 
example,  from  1880-90,  our  total  population  increased  24.9  per  cent;  from 
1890-1900,  20.7  per  cent.  During  the  same  periods,  the  cities  now  having  a 
population  of  25/000  or  more,  increased  49.5  per  cent  and  32.6  per  cent 
respectively. 

Four  out  of  five  counties  in  Rhode  Island  (the  county  in  which  Provi- 
dence is  located,  is  the  one  omitted)  reported  a population  of  78,657  in  1880. 
90,383  in  1890,  and  99,773  in  1900.  This  indicated  little  gain,  or  perhaps  a 
loss  in  the  strictly  rural  population.  Five  out  of  eight  counties  in  Connecticut 
reported  a gain  of  26,740  during  the  period  1870-1880;  11,180,  1880-1890;  and 
19,605,  1890-1900.  The  five  counties  chosen  are  those  having  the  smallest 
population.  This  shows  a tendency  toward  a larger  rural  population.  Ver- 
mont, a state  having  no  large  cities,  reported  an  increase  in  population  of 
1,735  during  the  period  1870-1880;  136,  1880-1890;  11,219,  1890-1900.  This 
accords  with  Connecticut.  The  rural  counties  of  New  York  show  little  change 
during  the  last  decade. 

Professor  Cooley  has  made  a study  of  twelve  rural  townships  in  Southern 
Michigan.6  In  these  townships,  there  was  a decrease  of  1,100  during  the 
period  1880-1890,  and  628  during  the  period  1890-1900.  He  reports  similar 
results  in  a study  of  ten  rural  townships  in  New  York  and  Connecticut. 
His  conclusion  is  that  there  has  been  a gradual  slowing  up  of  the  decrease 
in  the  rural  population  of  these  three  states. 

The  population  of  the  State  of  Ohio  increased  485,229  during  the  last 
decade;  but  five  out  of  eighty-eight  counties  reported  an  increase  of  294,986. 
These  five  counties  contained  the  cities  of  Cleveland,  Cincinnati.  Toledo, 
Columbus  and  Dayton.  Of  twenty  counties  having  a population  of  less  than 
25,000  each,  seven  reported  an  increase  in  population  and  thirteen  a decrease 
during  the  last  decade.  In  the  South  there  is  a general  increase  in  the  popula- 
tion. In  Mississippi,  only  four  counties  show  a decrease  in  population  since 
1890  ; in  Tennessee,  eight,  and  in  North  Carolina,  ten. 


Publications  of  the  Michigan  Political  Science  Association.  Vol.  VI,  p.  355. 


Growth  and  Management  of  American  Agriculture 


89 


These  statistics  only  give  force  to  the  belief  that  the  great  discrepancy, 
between  the  rate  of  growth  of  our  cities  and  of  our  rural  districts,  is  not 
likely  to  be  as  great  in  the  future  as  it  has  been  in  the  past.  New  and  power- 
ful factors  in  rural  life,  the  trolley  lines,  rural  mail  delivery,  the  telephone, 
better  rural  schools  and  better  roads,  may  be  expected  to  cause  a backward 
flow  from  cities  to  the  rural  communities.  The  isolation  of  the  farmer’s 
life  has  been  one  of  its  worst  features.  “While  one  person,”  says  one  writer, 
“is  drawn  to  a city  by  schools,  churches,  libraries,  concerts  and  theaters,  five 
are  drawn  by  the  excitement  and  stir  and  bustle  of  a city.”  The  reduction  in 
the  average  size  of  the  family,  and  the  increase  of  the  foreign  element  have 
reduced  somewhat  the  social  activity  of  rural  communities.  The  church  is  no 
longer  the  social  center  that  it  was  formerly  in  rural  communities. 

The  farmer’s  life  in  the  past  has  been  characterized  in  this  fashion : 
“Perpetual  toil  in  good  weather  all  through  the  busy  season,  and  perpetual 
loneliness  in  bad  weather  and  most  of  the  winter.”  Good  roads  are  to  be  the 
solution  of  the  question  of  “perpetual  loneliness”  during  bad  weather.  The 
lot  of  the  farmer’s  wife  has  been  especially  hard.  She  has  been  condemned 
to  a life  of  hard  work  from  early  morning  to  night,  day  after  day,  and  year 
after  year.  If  a farmer  leads  an  isolated  life,  the  life  which  his  wife  leads 
is  doubly  isolated.  Woman’s  domestic  industry  is  one  of  the  “belated  indus- 
tries.” The  march  of  modern  invention  and  modern  industry  has  to  a large 
degree  passed  it  by. 

It  may  be  urged  that  this  isolation  is  no  new  thing,  people  have  always 
lived  more  or  less  in  isolation.  The  isolation  of  the  pioneer  was  greater  than 
that  of  any  farmer  of  the  present  day.  The  real  cause  of  the  discontent  lies 
in  the  contrast  between  the  social  advantages  of  the  city  and  those  of  the 
rural  communities.  The  cities  have  drained  the  rural  districts  on  account  of 
their  economic  and  social  opportunities.  The  competition  of  the  grazing 
lands  of  the  West,  and  of  the  cereal  growing  land  situated  in  Mississippi 
Valley  has  caused  the  abandonment  of  many  farms  in  the  northeastern  portion 
of  our  country.  The  increase  in  intensive  methods  in  agriculture  will  aid  in 
arresting  a decrease  in  the  rural  population.  The  farmer  of  the  near  future 
will  be  able  to  obtain  many  of  the  advantages  of  the  city  without  many  of  its 
disadvantages,  its  homelessness,  its  dirt,  its  noise  and  its  overcrowding.  The 
writer  believes  that  the  census  of  1910  will  show  a relative  decrease  in  the 
rate  of  growth  of  the  cities  and  a relative  increase  in  the  growth  of  the  rural 
population,  as  compared  with  the  census  reports  for  1890  and  1900. 

Summary. — The  farmers  of  the  United  States  have  been  and  are  still 
passing  through  a period  of  adjustment  made  necessary  by  the  competition 
caused  by  cheapened  and  improved  means  of  transportation.  For  example, 
in  the  New  England  States  much  of  the  land  which  was  devoted  to  general 
agriculture  has  been  allowed  to  lie  fallow.  Western  grains  have  driven  the 
New  England  farmer  from  the  grain-producing  industry;  and  not  all  the  land 
is  needed  for  the  more  intensive  agriculture  of  the  present.  This  accounts 
for  the  increase  of  the  amount  of  “unimproved  land”  in  this  section  of  the 
United  States.  While  this,  like  all  other  industrial  and  social  changes,  has 
been  very  hard  and  trying  to  many ; in  the  end  the  whole  people  will  be 

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benefited.  Those  products,  which  can  be  transported  easily  and  readily  over 
long  distances,  will  be  grown  in  the  section  or  sections  best  adapted  to  raise 
the  same.  The  raising  of  cattle  for  slaughter,  of  sheep,  and  of  the  cereals, 
has  already  been  to  some  extent  confined  to  certain  sections.  Market  garden- 
ing, growing  of  small  fruits,  and  the  production  of  milk  are  carried  on  in 
proximity  to  large  cities ; it  being  more  difficult,  though  by  no  means  imprac- 
ticable, to  transport  the  products  over  long  distances.  There  are,  however, 
influences  at  work,  of  which  we  have  already  spoken,  that  may  stop  this 
tendency  toward  localization  of  certain  agricultural  industries.  Such  localiza- 
tion, if  carried  to  an  extreme,  may  actually  cause  a waste  on  account  of  the 
«xtra  amount  of  labor  and  machinery  needed  to  transport  the  product.  The 
added  cost  of  transportation  might  outweigh  any  economy  gained  in  produc- 
tion. 

Steam  has  caused  a concentration  of  industry  in  the  large  cities.  Our 
villages  have  declined  in  importance.  The  latter  part  of  the  nineteenth 
century  has  been  characterized  by  feverish  haste  and  unhealthy  unrest  in  our 
cities,  by  idleness  and  lack  of  occupation  in  our  villages.  In  the  country  dis- 
tricts farmers  have  worked  their  farms  just  as  their  fathers  did;  it  is  only 
in  recent  years  that  there  has  been  an  acceptation,  in  any  appreciable  degree, 
of  the  idea  that  science  is  of  value  to  the  farmer.  A change  may  be  expected 
in  the  near  future,  and  this  is  to  be  hastened  by  the  long  distance  transmission 
of  electrical  power  and  by  the  development  of  industries  requiring  a small 
amount  of  machinery  and  power.  This  is  likely  to  cause  a revival  of  village 
industry.  The  farmer  will  be  benefited  by  the  building  up  of  a home  market 
for  his  produce.  When  this  occurs  we  may  expect  an  era  of  more  intensive 
agriculture,  and  of  increased  value  of  all  kinds  of  farm  property.  The  wide 
separation  in  location  between  manufacturing  and  agricultural  industries  is  to 
be  lessened.  With  this  change  will  come  not  only  an  improvement  in  agri- 
cultural conditions,  but  also  a betterment  in  the  condition  of  the  laboring 
-class. 

In  conclusion,  the  part  which  education  is  to  take  must  be  briefly  con- 
sidered. “The  remedy  for  urban  congestion  so  far  as  rural  population  con- 
tributes thereto  is  partly  educational  and  partly  economic.”  “If  the  cities  gave 
no  better  educational  facilities  to  children  than  many  country  children  have 
to  put  up  with,  families  would  desert  such  a city  as  they  would  a sinking 
ship.”7  The  last  quotation  undoubtedly  states  its  case  too  forcibly;  but  a 
great  need  of  the  rural  community  is  better  educational  and  social  advantages. 
“We  are  without  doubt  in  this  country  just  on  the  edge  of  a great  popular 
movement  for  the  improvement  of  the  condition  of  rural  life  through  the 
improvement  of  the  rural  schools.  As  one  phase  of  the  movement  there  will 
come  the  broadening  of  the  instruction  in  the  principles  of  agriculture,  so 
that  in  addition  to  college  courses  we  shall  have  secondary  courses  in  the 
ordinary  and  special  high  schools  and  even  some  elementary  instruction  in 
the  common  schools.”8  The  city  does  not  furnish  an  environment  which  is 

7 Report  of  Industrial  Commission.  Vol.  XIX,  p.  122. 

* Popular  Science  Monthly.  September,  1902.  Vol.  LXI,  p.  477. 

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Growth  and  Management  of  American  Agriculture  91 

natural.  The  education  of  the  young  in  cities  must  always  lack  an  essential 
element.  The  training  received  by  the  farmer  lad  is  one  which  gives  him  a 
great  power  of  adaptability.  The  lack  of  such  training  in  the  cities  is  one 
of  the  causes  for  the  growth  of  manual  training  in  our  schools.  Scientific 
principles  are  to  guide  the  successful  farmer  of  the  future.  Our  rural  schools, 
from  the  primary  grades  to  the  agricultural  college,  must  have  in  view  the 
education  of  men  and  women  for  farm  duties. 

Frank  T.  Carlton. 

Toledo  University  School. 


PERSONAL  NOTES 


University  of  Kansas. — Mr.  Arthur  Jerome  Boynton  has  become  assist- 
ant professor  of  economics  and  sociology  in  the  University  of  Kansas.  Mr. 
Boynton  was  born  at  Janesville,  Wis.,  December  n,  1875,  and  educated  in 
the  public  schools,  in  Beloit  Academy  and  in  Beloit  College  (Ph.  B.,  1896). 
For  four  years  Mr.  Boynton  was  teacher  of  biology  and  economics  in  the 
City  High  School  at  Sparta,  Wis.  During  the  next  two  years  he  received 
the  A.,  B.  from  Harvard  (1901)  and  the  A.  M.  from  Columbia  University 
in  1902.  The  year  1902-03  was  spent  at  Harvard. 

University  of  Michigan. — Mr.  Frank  Burr  Marsh  has  been  appointed 
assistant  in  history  in  the  University  of  Michigan.  Mr.  Marsh  was  born 
March  4,  1880,  at  Big  Rapids,  Mich.,  received  his  preparatory  education  in 
the  local  public  schools,  and  his  college  course  in  the  University  of  Michigan, 
graduating  with  the  Class  of  1902.  The  year  1902-03  was  spent  at  the 
Sorbonne  in  Paris. 

Dr.  Harrison  Standish  Smalley,  who  was  last  year  assistant  in  political 
economy  in  the  University  of  Michigan,  has  been  appointed  instructor  in 
that  institution.  He  was  born  in  Chicago,  April  18,  1878,  and  educated 
in  the  public  schools  in  that  city,  and  in  the  University  of  Michigan  (A.  B., 
1900).  Dr.  Smalley  pursued  graduate  studies  in  the  University  of  Michigan, 
1900-01,  1902-03  and  in  Cornell  University,  1901-02.  During  the  second 
year  at  Michigan  he  was  a fellow  in  political  economy  and  finance. 

Under  the  direction  of  the  Statistician  of  the  Interstate  Commerce  Com- 
mission, Dr.  Smalley  prepared  a report  on  “State  Railroad  Regulation  from 
1890  to  1902.”  This  report  has  been  published  by  the  Commission.  Dr. 
Smalley  has  also  published  “A  New  Phase  of  Corporation  Control  in  the 
World  To-day,”  April,  1903. 

Dr.  Claude  Halstead  Van  Tyne  has  been  called  to  the  University  of 
Michigan  as  assistant  professor  in  charge  of  American  history  department. 
Dr.  Van  Tyne  was  born  at  Tecumseh,  Mich.,  October  16,  1870,  educated  in 
the  local  public  schools  and  at  the  State  University,  receiving  the  A.  B.  in 
1896.  In  1896-97  he  was  at  Heidelberg,  1897  Leipzig  and  Paris  and  from 
1898-T900  at  the  University  of  Pennsylvania  as  fellow  in  history,  receiving  the 
Ph.  D.  in  1900.  For  the  next  three  years  he  was  senior  fellow  in  the  last- 
named  institution  and  in  1903  he  spent  six  months  in  Washington,  D.  C., 
making  a report  for  the  Carnegie  Institution  on  the  facilities  for  historical 
research. 

Dr.  Van  Tyne  is  a member  of  the  American  Historical  Association,  the 
Pennsylvania  Historical  Society  and  he  is  editor  of  Foundations  of  American 
History,  published  by  the  Booklovers’  Library. 

Dr.  Van  Tyne  has  published  the  following : 

“The  Loyalists  in  the  American  Revolution  ” Macmillan  Company,  1902. 
8vo.  360  pp. 


Personal  Notes 


93 


“Brief  History  of  the  United  States Published  by  the  United  States 
Government  for  distribution  in  the  Philippines. 

“Letters  of  Daniel  Webster .”  McClure,  Phillips  & Co.,  1902.  8vo. 
770  pp. 

College  of  the  City  of  New  York. — Professor  John  H.  Finley,  late  of 
Princeton,  has  become  president  of  the  College  of  the  City  of  New  York. 

Since  1900, 1 Dr.  Finley  has  published  the  following: 

“The  Isle  of  Pines.”  Scribner’s  Magazine,  February,  1903. 

Monthly  contributions  to  The  Lamp.  Chas.  Scribner’s  Sons. 

Frequent  contributions  to  Harper’s  Weekly  on  political  subjects,  1902- 
1903. 

New  York  University. — Dr.  Frederick  A.  Cleveland  has  been  appointed 
professor  of  finance  in  the  New  York  University. 

During  the  past  two  years  Dr.  Cleveland  has  held  the  following  positions : 

Instructor  in  Finance,  University  of  Pennsylvania,  1900-03. 

Member  of  Committee  on  Uniform  Municipal  Accounting  and  Statistics 
of  the  National  Municipal  League. 

Secretary  of  Committee  on  Uniform  Municipal  Accounting  and  Statistics. 

Lecturer  in  finance,  New  York  University,  1902-1903. 

Professor  in  finance,  New  York  University,  1903-1904. 

Associated  with  Haskins  & Sells,  certified  public  accountants,  30  Broad 
street,  New  York. 

Director  of  the  American  Academy  of  Political  and  Social  Science. 

Since  the  last  personal  note  in  January,  1901, 2 Dr.  Cleveland  has  published 
the  following  works : 

“Funds  and  Their  Uses.”  In  D.  Appleton  & Co.’s  Business  Series,  1902. 
Pp.  318. 

“First  Lessons  in  Finance.”  D.  Appleton  & Co.’s  Twentieth  Century 
Text-Book  Series,  1903.  (The  same  being  a revised  edition  of  “Funds  and 
Their  Uses.”) 

“Is  the  United  States  Treasury  Responsible  for  the  Present  Monetary 
Disturbance?”  Annals  of  American  Academy,  November,  1902. 

“The  Present  Financial  Outlook.”  Annals  of  American  Academy,  March, 
1903. 

“Memorial  Edition  of  Essays  on  Accountancy  and  Business  Education.” 
By  Chas.  Waldo  Haskins.  Introduction  and  biographical  sketch  by  the  editor. 
Harper  & Bros.,  1903. 

Dr.  Cleveland  has  also  contributed  a series  of  financial  articles  to  the 
Railway  World,  and  has  written  for  financial  journals. 

University  of  Pennsylvania. — Dr.  Jacob  Elon  Conner  has  been  appointed 
instructor  in  economics  in  the  Wharton  School,  University  of  Penn- 
sylvania. Dr.  Conner  was  born  at  Wilmington,  Clinton  County,  Ohio, 
but  educated  in  Iowa,  going  through  the  public  schools  of  Henry  County, 
Howes  Academy  at  Mt.  Pleasant  and  the  State  University,  graduating  as 

1 See  The  Annals,  vol.  xvi,  p.  282,  September,  1900. 

2 See  The  Annals,  vol.  xvii,  p.  108. 

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94 


The  Annals  of  the  American  Academy 


Bachelor  of  Arts  in  1891.  Graduate  work  was  pursued  at  Yale,  1891-1892, 
Chicago  1892-1893,  University  of  Iowa  as  fellow  1900-1902,  receiving  the 
Ph.  D.  in  1903.  He  was  principal  of  the  Congregational  Academy  at  Pt. 
Byron,  111.,  1893-1896,  held  a similar  position  at  Denmark,  la.,  and  in  1902-1903 
was  assistant  in  commerce  and  finance  in  the  State  University  of  Iowa.  He  is 
a member  of  the  following  societies:  The  American  Economic  Association, 
the  Iowa  Political  Science  Club,  the  American  Academy  of  Political  and  Social 
Science. 

Dr.  Conner  has  published  the  following : 

“Uncle  Sam  Abroad.”  Rand,  McNally  & Co.,  1900.  Pp.  250. 

An  article  under  same  title  in  the  World  To-day,  August,  1903. 

Dr.  James  Wilford  Garner3  has  been  appointed  instructor  in  political 
science  at  the  University  of  Pennsylvania.  Dr.  Garner  has  been  lecturer  at 
Columbia  University  and  acting  editor  of  the  department  of  political  science 
of  the  New  International  Encyclopedia.  In  the  latter  capacity  he  has  con- 
tributed most  of  the  articles  in  American  History  and  Political  Science  to  the 
Encyclopedia  from  the  fourth  volume  on,  numbering  about  three  hundred. 
Among  the  more  important  of  these  are : 

Articles  on  the  governments  of  American  and  European  countries,  except 
Austria-Hungary. 

Articles  on  the  Missouri  Compromise,  Monroe  Doctrine,  Municipal  Cor- 
porations, Nullification,  Northwest  Territory,  Nicaragua  Canal,  Neutrality, 
Panama  Canal,  Reconstruction,  Privateering,  Referendum,  Representation, 
Secession. 

Mr.  Thomas  W.  Mitchell,4  who  was  last  year  assistant  instructor  in. 
economics  and  statistics  in  the  State  University  of  Iowa,  has  become  assistant 
in  economics  in  the  Wharton  School,  University  of  Pennsylvania. 

Dr.  Joseph  Russell  Smith  has  been  appointed  instructor  in  commerce 
in  the  Wharton  School,  University  of  Pennsylvania.  Dr.  Smith  was  bom 
at  Lincoln,  Loudoun  County,  Va.,  February  3,  1874,  and  educated  in  the 
Friends’  School  at  that  place  and  Jenkintown,  Pa.  He  studied  in  the  Uni- 
versity of  Pennsylvania,  1893-1894  and  1897-1898,  receiving  the  Bachelor’s 
degree.  In  1896  and  1897  he  attended  the  summer  sessions  of  the  University 
Extension  Society  and  in  1898-1899  and  1902-1903  did  graduate  work  in 
the  University  of  Pennsylvania.  The  University  year  1901 -1902  was  spent  at 
Leipzig  and  the  Ph.  D.  degree  was  received  at  the  University  of  Pennsyl- 
vania, 1903,  while  Harrison  fellow  in  economics.  The  Doctor’s  thesis  was 
on  “The  Organization  of  the  Ocean-Carrying  Trade.” 

In  1895-1896  Dr.  Smith  was  teacher  of  history  and  geography  at  Abing- 
ton  Friends’  School,  Jenkintown,  Pa.  He  was  instructor  in  history  at  the 
George  School,  Newtown,  Pa.,  during  1896-1897  and  1898-1899.  From  1899- 
1901  he  was  with  the  Isthmian  Canal  Commission  at  Washington,  assisting 
Professor  Emory  R.  Johnson  with  traffic  investigations.  He  is  a member  of 
the  American  Academy  of  Political  and  Social  Science. 

3 See  The  Annals,  vol.  xx,  p.  402,  September,  1902. 

4 See  The  Annals,  vol.  xx,  p.  630,  November,  1902. 


Personal  Notes 


95 


The  list  of  his  published  writings  is  as  follows : 

“ The  Philippine  Islands  and  American  Capital”  Popular  Science  Monthly,. 
June,  1899. 

“Western  South  America  and  its  Relation  to  American  Trade”  Annals 
of  American  Academy  of  Political  and  Social  Science,  November,  1901. 

“American  Forestry — A New  Career.”  Forum,  May,  1902. 

“Geography  in  Germany.  I.  The  Primary  and  Secondary  Schools.  II. 
The  University.”  Journal  of  Geography,  November  and  December,  1902. 

“The  Economic  Geography  of  the  Argentine  Republic.”  Bulletin  of  the 
American  Geographic  Society,  April,  1903. 

Princeton  University. — Dr.  Arthur  Cleveland  Hall  has  been  called  to 
Princeton  University  as  instructor  in  economics  and  sociology.  Dr.  Hall 
was  born  in  New  York  City,  October  25,  1865,  received  his  early  education 
in  a private  school  at  Middletown,  Conn. ; St.  John’s  Military  School,  Man- 
lius, N.  Y.  He  was  four  years  at  Trinity  College  and  received  the  A.  B.  in 
1888.  His  graduate  work  was  pursued  at  Johns  Hopkins  University,  1892- 
1894;  Columbia  University,  1894-1895  (fellow  in  sociology),  1898-1900,  1902- 
1903.  The  Ph.  D.  was  conferred  by  Columbia  in  1901. 

From  1888  to  1892  Dr.  Hall  was  in  the  printing  and  publishing  business 
in  New  York  and  in  1891-1892  he  was  assistant  business  manager  of  the 
New  Bedford  Evening  Post.  While  a graduate  student  he  worked  for  charity 
organizations  in  Baltimore,  Brooklyn  and  New  York,  investigated  the  Coxey 
movement  of  1893,  was  assistant  superintendent  of  the  Bureau  of  Charities 
and  Corrections,  at  World’s  Columbian  Exposition,  Chicago,  1893. 

In  1895  he  was  volunteer  tenement  inspector  for  the  R.  W.  Gilder  Tene- 
ment Commission  and  from  1901-1903  was  in  charge  of  the  Orange  Valley 
Social  Settlement,  and  New  Jersey  state  delegate  to  National  Prison  Asso- 
ciation. 

Dr.  Hall  has  published  the  following : 

“Crime  in  its  Relation  to  Social  Progress .”  Columbia  University  Press,. 
1902.  Pp.  xvii,  427. 

“An  Observer  in  Coxey’s  Camp.”  The  Independent,  May,  1894. 

“Cutty hunk.”  The  New  England  Magazine,  September,  1897. 

Purdue  University. — Mr.  Edward  Hatton  Davis  has  been  appointed 
instructor  in  economics  and  history  in  Purdue  University.  Mr.  Davis  was 
born  March  27,  1879,  at  Hyde  Park,  Norfolk  County,  Mass.  His  early 
education  was  obtained  in  the  local  grammar  school  and  in  the  Berkeley 
and  Chauncey  Hall  Schools  in  Boston.  In  1900  the  Bachelor’s  degree  was 
received  from  Massachusetts  Institute  of  Technology,  and  the  year  1902- 
1903  was  spent  in  the  School  of  Political  Science,  Columbia  University. 

During  the  summer  of  1900,  Mr.  Davis  was  special  agent  for  Manufac- 
tures for  the  United  States  Census,  and  this  was  followed  by  two  years’  service 
as  statistical  clerk  in  the  Department  of  Municipal  Statistics,  Boston,  Mass. 

Western  Reserve  University. — Dr.  Elbert  Jay  Benton  has  been  appointed 
instructor  in  history  in  the  Western  Reserve  University.  Dr.  Benton  was 
born  at  Dubuque,  la.,  and  educated  in  the  public  schools  of  Holton,  Kan., 
and  Campbell  College,  receiving  the  Bachelor’s  degree  in  1895.  He  went  to 


■96  The  Annals  of  the  American  Academy 

Johns  Hopkins  University  as  University  scholar  in  1901,  as  fellow  in  1902, 
and  received  the  Ph.  D.  in  1903. 

From  1897  to  1900  Dr.  Benton  was  instructor  in  history  in  the  Lafayette 
(Ind.)  High  School. 

He  has  published  the  following  works : 

" Taxation  in  Kansas.”  1899,  40  pp.  i2mo.  Johns  Hopkins  Studies. 
aThe  Wabash  Trade  Route  in  the  Development  of  the  Old  Northwest.” 
1903,  1 12  pp.  i2mo.  Johns  Hopkins  Studies. 


BOOK  DEPARTMENT 


NOTES 

The  late  Professor  Joseph  LeConte,  whose  autobiography1  has  recently 
been  published,  was  a man  of  Southern  birth  and  education.  His  views  on 
the  race  problem  in  the  South  are  of  interest.  He  believed  that  “the  great 
impoverishment  of  the  South  was  due  wholly  to  the  complete  disorganization 
of  the  labor,  as  a necessary  consequence  of  the  sudden  change/’  due  to  free- 
ing the  slaves.  Concerning  the  question  of  negro  suffrage,  LeConte  held 
the  view  that  there  should  be  a franchise  without  distinction  of  color,  but  with 
an  educational  and  property  qualification.  He  believed  in  a government  of 
all  the  people,  for  all  the  people,  but  not  by  all  the  people. 


The  fourth  volume  of  Appleton’s  Series  of  Historic  Lives  has  for  its 
subject  “Sir  William  Johnson.”2  While  a nhmber  of  books  have  been  written 
on  this  interesting  Colonial  character,  the  present  volume  brings  its  subject 
in  closer  touch  with  the  history  of  the  time  than  those  which  have  preceded 
it.  Much  of  conjecture  has  been  directed  toward  the  possible  results  of 
alienation  of  the  Iroquois  and  the  other  tribes  which  made  up  the  confedera- 
tion known  as  the  Six  Nations  at  a time  "when  Anglo-Saxons  were  struggling 
for  a foothold* on  the  Western  Continent.  Mr.  Buell  does  not  engage  in 
conjecture  of  this  kind,  but  by  confining  himself  to  the  public  acts  and 
private  life  of  Sir  William  Johnson,  and  pointing  out  his  great  activity  in  the 
service  of  the  Crown,  he  has  contributed  a chapter  to  American  history  that 
cannot  be  ignored.  His  portrayal  gives  a clearer  insight  into  all  of  the  con- 
flicts between  England  and  France,  on  the  one  hand,  and  between  the  aborig- 
inal inhabitants  and  the  European  invaders  of  their  territory  on  the  other, 
than  could  possibly  be  drawn  from  a general  account  in  which  the  personality 
of  a leading  figure  is  largely  lost.  Although  Sir  William  Johnson  died  just 
at  the  beginning  of  the  Revolutionary  War,  his  influence  may  be  traced  in 
our  Indian  policy  to  the  present  day,  and  the  stamp  of  his  enterprise  is  still 
to  be  found  on  a large  part  of  the  interior  of  the  State  of  New  York. 


Mr.  John  R.  Dos  Passos’  “The  Anglo-Saxon  Century  and  the  Unifica- 
tion of  the  English-Speaking  People,”3  suggests  In  its  title  the  theme  of  the 
work.  After  setting  forth  in  his  peculiarly  free  and  graphic  style  the  import 
of  the  last  year  of  the  nineteenth  century  in  its  bearing  on  Anglo-Saxon 

1 The  Autobiography  of  Joseph  LeConte.  Edited  by  William  Dallam  Armes.  Pp. 
xviii,  337.  Price,  $1.25.  New  York;  D.  Appleton  & Co.,  1903. 

2 By  Augustus  C.  Buell.  Pp.  vii,  281.  Price,  $1.00.  New  York;  D.  Appleton  & 
Co.,  1903. 

3 Pp.  xv,  242.  Published  by  G.  P.  Putnam’s  Sons,  New  York,  1903. 

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98  The  Annals  of  the  American  Academy 

supremacy,  the  author  boldly  predicts  for  a united  English  people  the  domi- 
nation of  the  political  world.  The  reasons  given  for  such  a conclusion  are 
drawn  from  historical  analogy  and  the  strong  vitality  of  English  institu- 
tions. Attention  is  called  to  sentimental,  economic  and  legal  reasons  for 
union,  and  as  causes  for  alliance  he  points  to  the  pressure  which  will  come 
from  continental  influence  and  competition.  Mr.  Dos  Passos  has  gone  further 
than  most  writers  on  this  subject,  and  has  set  out  in  detail  a plan  by  which 
he  believes  this  much  desired  result  may  be  attained.  Perhaps  the  weakest 
part  of  his  appeal  may  be  found  in  the  attempt  to  indicate  the  specific  manner 
in  which  his  prophecy  of  political  evolution  will  take  place.  It  is  a shock, 
both  to  an  American  and  an  English  reader,  even  though  he  accept  the  desir- 
ability of  union,  to  read  the  detailed  prescription  that  Canada  shall  release 
her  bond  of  sovereignty  to  England  and  divide  her  territory  into  provinces 
which  shall  be  admitted  as  states  of  the  Union — and  this,  too,  as  one  of  the 
steps  incident  to  binding  England  and  America  more  closely  together.  The 
mistake  is  made  that  from  pure  sentiment,  which,  to  say  the  least,  at  the 
present  time  is  ill-defined,  the  author  attempts  to  forecast  the  trend  of  his- 
torical events  through  the  coming  century  with  reference  to  Anglo-Saxon  alli- 
ance. The  work,  however,  may  have  some  force  in  raising  up  discussion  and 
helping  to  mold  opinion.  The  most  fruitful  suggestion  seems  to  be  along  the 
lines  of  an  Anglo-Saxon  Zollverein. 


The  Circumstances  under  which  the  municipal  code  of  Ohio4  was 
passed,  in  October,  1902,  attracted  attention  throughout  the  country.  The 
Supreme  Court  of  the  state,  by  a decision  rendered  in  June,  1902,  declared 
unconstitutional  the  legislation  under  which  the  cities  of  the  state  had  been 
organized,  on  the  ground  that  it  violated  the  provisions  of  the  state  constitu- 
tion, forbidding  local  and  special  legislation.  It  was  necessary  to  call  a 
special  session  of  the  legislature,  to  which  the  governor  submitted  a municipal 
code  which  was  intended  to  guarantee  to  the  cities  of  the  state  a wide  meas- 
ure of  home  rule  and  to  guard  them  against  the  evils  of  state  interference 
in  their  local  affairs.  It  is  this  new  code  which  Mr.  Ellis  has  annotated  with 
a wealth  of  explanatory  notes  and  a careful  comparison  with  the  provisions 
of  the  old  municipal  laws.  The  annotations  have  been  so  arranged  as  to 
bring  out  very  clearly  the  main  features  of  the  code.  The  work  is  deserving 
of  special  mention  because  the  Ohio  Code  is  likely  to  have  considerable  influ- 
ence upon  municipal  legislation  in  this  country.  The  careful  compilation  of 
Mr.  Ellis  will  be  welcomed  by  students  of  municipal  government  as  an  impor- 
tant contribution  to  the  literature  of  the  subject. 


“Griffis’  Young  People’s  History  of  Holland”5  is  in  thorough  keeping 
with  its  title,  and  the  reader  must  therefore  not  expect  to  find  in  it  a full  pre- 

4 Ohio  Municipal  Code.  By  Wade  H.  Ellis.  Pp.  xxxii,  957.  Price,  $3.50. 
Cincinnati:  W.  H.  Anderson  Company,  1903. 

5 By  William  Elliot  Griffis.  Pp.  322.  Price,  $1.50.  Boston:  Houghton,  Mifflin 
& Co.,  1903. 


Notes 


99 


sentation  of  the  history  of  Holland.  It  tells  the  story  of  the  Dutch  people  in 
clear  narrative  form,  selecting  everywhere  the  concrete  and  tangible ; persons 
and  events  rather  than  theories,  and  tendencies  or  even  politics.  The  result  is 
a simple  and  entertainingly  told  history  of  Holland  for  young  people  that  is 
comparatively  free  from  the  use  of  the  pot  and  shears  that  so  frequently  char- 
acterizes the  making  of  books  of  this  kind.  The  illustrations  are  valuable, 
being  in  most  cases  from  contemporary  paintings  or  engravings.  The  book 
has  an  index  and  an  outline  of  Dutch  history  in  the  form  of  an  appendix. 


Under  the  title  of  “The  Lords  Baltimore  and  the  Maryland  Palati- 
nate”6 there  has  been  published  the  series  of  six  lectures  on  Maryland 
colonial  history,  delivered  by  Clayton  Colman  Hall,  before  the  Johns  Hop- 
kins University  in  1902.  The  lectures  present  an  excellent  sketch  of  the 
lives  of  the  successive  barons  of  Baltimore,  together  with  a review  of  the 
more  important  events  relating  to  the  history  of  colonial  Maryland  and  the 
relation  of  the  proprietaries  to  their  province.  The  treatment,  although  popu- 
lar in  form,  is  a scholarly  one,  being  based  upon  the  best  authorities,  and 
primarily  upon  the  colonial  archives.  Especially  valuable  is  the  very  fair  and 
judicial  discussion  of  the  much  controverted  topic  of  the  establishment  of 
religious  toleration.  The  final  lecture  gives  an  interesting  account  of  the  man- 
ners and  customs,  the  social  and  economic  conditions  of  the  province.  The 
author  gives  in  his  preface  a discriminating  estimate  of  the  chief  secondary 
works  upon  the  history  of  Maryland,  and  supports  his  text  by  frequent  refer- 
ences in  his  footnotes  to  the  archives  and  other  authorities  consulted.  Excel- 
lent reproductions  of  a portion  of  Herrman’s  map  of  Virginia  and  Maryland, 
published  in  London  in  1673,  and  of  the  map  used  in  the  settlement  of  the 
boundary  dispute  between  Maryland  and  Pennsylvania,  are  inserted  in  the 
volume.7 


A delightfully  written  essay  in  local  history,  entitled,  “Pioneers  of 
Unadilla  Village,”8  bears  the  authorship  of  Mr.  Francis  Whiting  Halsey. 
The  work  is  intended  as  a memorial  to  Mr.  Halsey’s  native  village.  It  has, 
however,  more  than  local  significance  as  the  history  of  Unadilla  is  closely 
woven  into  the  web  of  migrations  which  played  so  large  a part  in  the 
development  of  the  interior  during  the  early  part  of  the  last  century.  Another 
interest  is  found  in  the  detailed  account  of  land  tenures  under  the  peculiar 
system  in  vogue  in  New  York,  in  the  description  of  early  town  meetings,  of 
road  houses,  road  districts  and  the  other  local  institutions  and  activities 
which  bring  into  clearer  light  the  early  pioneer  life  of  the  American  people. 
Mr.  Halsey’s  work  must  be  classed  among  those  authentic  local  histories  which 

6 The  Lords  Baltimore  and  the  Maryland  Palatinate.  By  Clayton  Colman  Hall, 
LL.  B.,  A.  M.  Pp.  xvii,  216.  Price,  60  cents.  Baltimore:  John  Murphy  Company,  1902. 

7 Contributed  by  Professor  Herman  V.  Ames,  University  of  Pennsylvania. 

8 Pp.  xvii,  323.  Privately  published.  Sold  by  The  Vestry  of  St.  Matthew’s  Church, 
Unadilla,  New  York. 

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IOO 


The  Annals  of  the  American  Academy 


have  been  written  of  New  England  towns.  It  has  none  of  the  characteristics 
of  the  usual  crude  efforts  toward  local  history  writing. 


The  fourth  volume  of  the  series  of  Source- readers  in  American  His- 
tory, selected  and  annotated  by  Professor  Albert  Bushnell  Hart,  of  Harvard 
University,  with  the  collaboration  of  Elizabeth  Stevens,  is  entitled  “The 
Romance  of  the  Civil  War.”y  Like  the  other  volumes,  this  book  is  intended 
for  children  in  the  grammar  grades,  and  is  made  up  of  current  writings  of 
the  period  immediately  prior  to  and  during  the  struggle,  which  give  color 
to  the  history  of  the  time.  The  selections  are  arranged  under  eight  titles : 
“The  Plantation,”  “The  Underground  Railroad.”  “In  and  Out  of  the  Army,” 
“Boy  Soldiers  and  Sailors,”  “In  Camp  and  on  the  March,”  “Under  Fire,” 
“On  Deck”  and  “Women  and  the  War.”  Among  those  represented  are 
some  of  the  most  noted  writers  of  the  time.  Anonymous  writings  and  selec- 
tions from  the  more  obscure  are  also  found  in  the  collection. 


John  A.  Hobson's  “Imperialism,  a Study,”10  is  more  accurately  described 
in  the  preface  than  in  the  sub-title,  for  it  declares  the  volume  to  be  “dis- 
tinctively one  of  social  pathology,  and  no  endeavor  is  made  to  disguise  the 
malignity  of  the  disease.”  Mr.  Hobson  approaches  the  subject  as  an  ardent 
and  avowed  anti-imperialist,  rather  than  as  a dispassionate  student  of  history 
and  politics;  and  the  consequence  is  a first-class  campaign  document,  but 
not  a careful  “study”  of  the  difficult  and  intricate  problems  incidental  to  the 
extension  of  the  power  and  influence  of  the  great  nations  over  less  civilized 
ones.  In  Mr.  Hobson’s  view,  the  spirit  and  “policy  and  the  methods  of 
imperialism  are  hostile  to  the  institutions  of  popular  self-government,  favor- 
ing forms  of  tyranny  and  social  authority  which  are  the  deadly  enemies  of 
effective  liberty  and  equality.”  Our  author  restates  this  thought  in  a variety 
of  ways ; but  there  is  no  variation  of  the  theme.  He  takes  a hopeless  view 
of  present  day  tendencies  in  America  and  Great  Britain.  He  is  really  morbid 
on  the  subject,  and  he  views  the  formidable  mass  of  material  touching 
British  expansion  which  he  has  brought  together  as  fit  material  for  patho- 
logical studies.  For  instance,  “Imperialism  is  a narrow,  sordid  thing”; 
the  peril  of  imperialism  resides  in  the  “falsification  of  the  real  import  of 
motives” ; it  is  “partly  the  dupery  of  imperfectly  realized  ideas,  partly  a case 
of  psychical  departmentalism.”  These  quotations,  which  are  all  taken  from 
the  first  few  pages  of  the  chapter  on  “Moral  and  Sentimental  Factors,” 
illustrate  alike  the  style  and  the  point  of  view.  Generalization  is  our  author’s 
favorite  method  of  treating  the  subject;  and  is  one  of  the  chief  faults  of  the 
work.  For  instance  (on  page  83)  he  declares  that  “it  is  Messrs.  Rockefeller, 
Morgan,  Hanna,  Schwab  and  their  associates  who  need  imperialism  and  who 
are  fastening  it  upon  the  shoulders  of  the  great  Republic  of  the  West.  They 
need  imperialism  because  they  desire  to  use  the  public  resources  of  their 

9 Pp.  xvi,  418.  Price,  60  cents.  New  York:  Macmillan  Company,  1903. 

10  Pp.  400.  Price,  $2.75.  New  York:  Jas.  Pott  & Co.,  1902. 

[512] 


Notes 


101 


country  to  find  profitable  employment  for  the  capital  which  otherwise  would 
be  superfluous.”  It  is  to  be  regretted  that  a man  of  Mr.  Hobson’s  undoubted 
ability  has  permitted  himself  to  be  led  into  the  faults  of  overemphasis  and  gen- 
eralization and  a too  hasty  acceptance  of  conclusions  thus  derived.  To  those 
who  seek  anti-imperialistic  arguments,  this  book  is  to  be  recommended ; but 
not  to  those  who  are  really  seeking  light  on  a difficult  and  complex  problem.u 


Mr.  Alfred  Hodder’s  book,  “A  Fight  for  the  City,”12  is  the  first  description 
of  a reform  movement  in  which  a broad  philosophic  treatment  of  the  elements 
that  enter  into  a local  political  campaign  is  attempted.  Mr.  Hodder  describes 
the  Low-Jerome  campaign  of  1901,  in  a spirit  which  does  complete  justice  to 
Mr.  Jerome,  but  ignores  the  other  candidates.  Instead  of  merely  eulogizing 
Mr.  Jerome,  the  author  has  made  him  the  text  of  an  essay  on  the  play  of 
political  forces  in  a great  city.  Every  chapter  abounds  with  keen  analysis  and 
incisive  comment.  The  chapters  on  “The  Powers  that  Rule”  and  “The 
People’s  Cause”  reach  the  level  of  the  best  pages  of  American  political  descrip- 
tive literature.  The  book  is  one  that  deserves  careful  reading,  especially  by 
the  younger  men  who  are  striving  to  raise  the  level  of  our  city  life. 


“The  Life  of  James  Madison,”  by  Mr.  Gaillard  Hunt,13  is  an  essay  which 
contains  new  information  on  the  public  and  private  aspects  of  Mr.  Madison’s 
eventful  career.  Mr.  Hunt  has  already  established  himself  in  the  confidence 
of  historians  by  his  thoroughness  and  skill  in  editing  “The  Writings  of  James 
Madison.”  His  contributions  made  to  history  and  the  new  biographical 
setting  given  to  his  character  sketch  come  from  the  closer  contact  of  research 
in  the  preparation  of  his  former  work.  There  is  scarcely  an  important  phase 
of  American  History,  from  the  Revolution  down  to  1825,  that  has  not  gained 
something  from  the  treatment  here  given. 


“The  Rise  and  Progress  of  the  Standard  Oil  Company”  14  is  a reprint 
and  revision  of  articles  appearing  in  the  Quarterly  Journal  of  Economics. 
The  account  begins  with  the  organization  of  the  first  Standard  Oil  Company 
in  1865,  and  sets  out  in  lucid  style  the  main  incidents  of  organization  and 
operation  to  the  date  of  publication.  Unlike  many  of  the  current  writings 
on  the  subject,  it  is  remarkably  free  from  bias,  and  may  be  considered  one 
of  the  most  instructive  and  authoritative  accounts  that  has  yet  been  put  into 
print.  The  magazine  character  of  the  original  has  limited  the  scope  of  the 
work,  and  in  this  particular  it  may  be  somewhat  disappointing. 

11  Contributed  by  C.  R.  Woodruff. 

12  Pp.  xi,  246.  Price,  $1.50.  Macmillan  Company,  New  York,  1903. 

13  Pp.  viii,  402.  Price,  $2.50.  New  York:  Doubleday,  Page  & Co. 

14  By  Gilbert  Holland  Montague.  Pp.  vii,  143.  Price,  $1.00.  New  York:  Harper  & 
Brothers,  1903. 


102 


The  Annals  of  the  American  Academy 


A region  of  growing  interest  to  the  traveling  public  is  the  Grand  Canyon 
of  the  Colorado.  Within  two  years  a number  of  volumes  have  been  pub- 
lished with  the  commendable  intention  of  giving  the  traveler  an  intelligent 
understanding  of  the  region.  One  of  the  latest  of  these15  consists  almost 
wholly  of  pictures,  preceded  by  a few  pages  only  of  introductory  remarks. 
But  the  pictures  are  a good  collection,  and  are  eloquent  in  description. 


Although  the  work  of  Professor  Scott  is  based  on  Snow’s  “Cases  and 
Opinions  on  International  Law,”16  it  is  in  reality  a new  book.  The  author 
has  preserved  Dr.  Snow’s  arrangement  of  the  subject,  but  has  so  enriched  the 
book  with  new  cases  that  the  work  may  be  regarded  as  his  own.  The  fact 
that  Dr.  Snow’s  book  only  contains  520  pages  of  cases,  while  the  present 
work  contains  933,  is  sufficient  indication  of  the  enlarged  scope  of  the  work. 
The  author  has  also  greatly  improved  the  index.  The  only  cause  for  regret 
is  that  he  omitted  the  republication  of  the  documents  contained  in  the 
appendix  of  the  original  work  and  which  included  the  “Declaration  of  Paris,” 
“The  Geneva  Convention,”  “The  Instruction  for  United  States  Armies  in  the 
Field,”  and  other  important  material  for  the  study  of  international  law.  In 
spite  of  this  fact,  however,  the  book  of  Professor  Scott  is  certain  to  supersede 
Snow’s  cases.  It  furnishes  to  the  American  student  the  possibility  of  study- 
ing international  law  by  the  “case  method.”  The  cases  have  been  selected 
with  such  care  that  it  will  hardly  be  necessary  for  the  student  to  use  English 
case  books  such  as  Cobbett.  The  work  of  Professor  Scott  gives  to  the  study 
of  international  law  a definiteness  which  it  has  not  hitherto  enjoyed. 


The  first  two-thirds  of  “The  Real  Benedict  Arnold,”  by  Mr.  Charles 
Burr  Todd,17  are  devoted  to  a vivid,  but  rather  distorted  description  of  his 
early  Revolutionary  career ; while  the  last  third  consists  of  a labored  attempt 
to  shift  the  blame  of  his  treason  upon  an  ungrateful  Congress  and  his  gay 
young  wife — a method  of  defence  neither  gallant  nor  historically  well 
founded.18 


The  State  Printer  of  Pennsylvania  (William  Stanley  Ray,  Harris- 
burg) has  just  issued  a pamphlet  of  162  pages,  entitled  “Vetoes  by  the  Gov- 
ernor, of  Bills  Passed  by  the  Legislative  Session  of  1903.”  It  constitutes  a 
unique  volume,  and  is  one  that  will  interest  the  student  of  current  politics  and 
legislative  methods.  Governor  Pennypacker  holds  the  record  not  only  in 
his  own  state,  but  very  likely  in  the  whole  United  States  for  vetoes.  During 

15  Glimpses  of  the  Grand  Canyon  of  Arizona.  By  Henry  G.  Peabody.  Price,  $1.25. 
Kansas  City.  Fred  Harvey. 

10  Cases  on  International  Law.  By  James  Brown  Scott.  Pp.  lxiv,  961.  Boston: 
Boston  Book  Company. 

17  Pp.  233.  Price,  $1.20.  New  York:  A.  S.  Barnes  & Co.,  1903. 

18  Contributed  by  I.  J.  Cox. 


Notes 


103 


and  after  the  session  of  the  Pennsylvania  legislature  just  closed,  he  vetoed 
ninety-two  measures,  and  if  we  take  into  consideration  the  bills  which  were 
withdrawn  from  him  and  amended  at  his  suggestion,  and  those  which  were 
quietly  defeated  because  of  his  declared  opposition,  the  number  would  run  up 
to  considerably  over  a hundred.  No  chief  executive  of  recent  years  has  shown 
more  care  in  the  examination  of  bills  submitted  to  him  for  his  signature,  and 
the  number  of  veto  messages  which  he  has  filed  of  record,  clearly  indicates 
the  high  standard  of  his  requirements. 


“An  Examination  of  Society”19  by  Mr.  Louis  Wallis,  is  based  upon  his 
article,  “The  Capitalization  of  Social  Development,”  in  the  American  Journal 
of  Sociology  for  May,  1902.  “The  book  attempts  to  bring  the  doctrine  of 
social  evolution  more  definitely  into  relation  with  the  facts  established  by  the 
-newer  treatment  of  history  and  life.”  The  central  point  in  social  history 
is  the  separation  into  classes.  This  “social  cleavage”  made  possible  the 
amassing  of  capital  which  is  social  in  its  origin,  although  held  chiefly  by 
individuals.  “Society  is  a collectivism,  or  socialism,  developed  under  the 
forms  of  individualism.  Only  in  this  way  could  progress  come.”  Progress 
is  not  conscious : “By  the  operation  of  cosmic  forces,  and  without  knowledge 
of  what  is  working  out  in  their  lives,  primitive  men  are  carried  up  from 
savagery  and  animalism  into  civilization.”  Cleavage  is  “the  engine  through 
which  art  worked  out  into  civilization.”  The  influence  of  this  “cleavage”  is 
traced  in  the  oriental,  classical  and  modern  societies.  In  the  author’s  opinion 
'‘“’social  cleavage  is  one  of  the  principal  factors  in  the  capitalization  of  social 
development.”  It,  however,  brings  trouble  as  well  as  progress  and  has 
involved  modern  nations  in  the  central  problem  of  the  age,  that  of  “bringing 
land,  labor  and  capital  together  in  the  freest  way.”  The  difficulty  is  that 
the  wealthy  own  the  land.  On  the  whole,  the  single  tax  is  probably  the 
■easiest  way  out. 


Among  the  various  treatises  of  recent  date  devoted  to  municipal  prob- 
lems few  have  been  so  practical  in  purpose  as  “Municipal  Public  Works,”  by 
S.  Whinery.20  The  book  is  valuable  not  for  its  sociology,  but  for  its  state- 
ment of  practical  difficulties  attending  the  conduct  of  municipal  enterprises. 
It  seems  that  this  is  just  the  sort  of  book  that  we  may  reasonably  expect 
the  average  alderman  or  mayor  to  take  seriously.  If  a contract  is  to  be  let, 
■or  an  assessment  to  be  levied,  or  the  building  of  a bridge  to  be  supervised, 
valuable  suggestions  will  be  found  as  to  the  expedient  next  step.  The  book 
is  notable  in  that  it  is  addressed  not  to  the  reformer  or  the  voter  or  the 
■editor,  “but  directly  to  the  executive  department  of  municipal  activities.”21 


19  Pp.  325.  Price,  $1.75.  Columbus,  Ohio:  Argus  Press,  1903. 

20  Pp.  xvi,  241.  Price,  $1.50.  New  York:  Macmillan  Company,  1903. 

21  Contributed  by  William  H.  Allen,  New  York. 

[515] 


104 


The  Annals  of  the  American  Academy 


REVIEWS 

Rural  Sanitary  Administration  in  Pennsylvania.  A paper  read  in  abstract 

before  the  Annual  Meeting  of  the  Associated  Health  Authorities  of 

Pennsylvania  at  Mechanicsburg.  Extracted  from  the  Seventeenth  An- 
nual Report  of  the  State  Board  of  Health.  By  William  H.  Allen, 

Ph.  D.  Harrisburg : W.  S.  Ray,  1903. 

The  State  of  Vermont,  with  a small  and  almost  exclusively  rural  popula- 
tion of  340,000,  contributes  to  the  work  of  state  sanitary  administration  the 
sum  of  $10,000  per  year.  The  people  of  Pennsylvania,  six  millions  in  num- 
ber, through  their  representatives,  annually  appropriate  only  $6,000  for  the 
use  of  their  State  Board  of  Health,  an  amount  which  represents  a per  capita 
expenditure  only  one-thirtieth  as  large  as  that  of  the  Green  Mountain  State. 
Pennsylvania  could  well  afford  to  furnish  its  State  Board  of  Health  with 
ten  times  that  sum,  for  the  purpose  of  enabling  it  to  carry  out  a single 
inquiry — the  investigation  of  the  sanitary  circumstances  and  conditions 
attendant  upon  the  mining  industry,  and  the  best  methods  of  improving 
such  conditions  as  are  found  to  exist  among  the  miners.  As  much  more 
should  be  provided  to  enable  the  State  Board  to  perfect,  and  bring  into  active 
use,  a thorough  system  of  vital  statistics  throughout  every  village  and  hamlet 
of  the  state,  thereby  making  its  name  of  Board  of  Vital  Statistics  something 
more  than  a nominal  title.  For  this  purpose,  no  better  example  can  be  quoted 
than  that  of  Michigan,  where  by  the  energetic  action  of  one  intelligent 
physician,  the  vital  statistics  of  the  state  have  been  brought  to  a condition 
of  perfection,  surpassing  in  many  points  those  of  the  older  states.  Massa- 
chusetts annually  expends  through  its  state  board,  for  the  protection  of  the 
purity  of  its  inland  waters  alone,  a sum  nearly  six  times  as  great  as  that 
which  Pennsylvania  gives  to  its  State  Board  of  Health  for  all  purposes. 
With  such  facts  in  view  Dr.  Allen  has  performed  for  the  State  of  Pennsyl- 
vania a useful  service  such  as  was  done  in  earlier  years  for  England  and  Scot- 
land by  Chadwick  and  Simon,  of  London,  and  by  Russell,  of  Glasgow. 

Dr.  Allen’s  able  monograph  may  be  commended  not  only  to  the  careful 
attention  of  every  member  of  the  legislature  of  his  state,  but  also  to 
sanitarians  generally  throughout  the  country,  since  the  defects  which  are 
so  thoroughly  exposed  in  this  piece  of  scholarly  criticism  are  not  confined 
to  Pennsylvania,  but  exist  in  a greater  or  less  degree  throughout  the  Union. 
These  defects  are  not  so  much  those  of  administration  as  of  want  of  intelli- 
gent appreciation  on  the  part  of  the  people  and  consequently  of  neglect  to 
provide  adequate  appropriations  for  carrying  out  the  legitimate  work  of  a 
sanitary  board. 

The  following  titles  of  chapters  show  the  general  character  of  the  address: 

1.  The  Evolution  of  Sanitary  Science. 

2.  The  Growth  of  Sanitary  Administration  in  Pennsylvania. 

3.  Introduction  of  State  Control. 

4.  Powers  of  the  State  Board  of  Health  and  Vital  Statistics. 

5.  The  Vital  Statistics  of  Pennsylvania. 

6.  Practical  Results  of  State  Control. 


Human  Nature  and  the  Social  Order 


105 


After  reviewing  the  history  of  general  sanitation  in  past  centuries,  the 
local  history  of  public  health  in  Pennsylvania  is  taken  up  and  the  author 
presents  a brief  sketch  of  the  growth  of  sanitary  administration  in  the  state 
from  the  days  of  William  Penn  down  to  the  establishment  of  the  State  Board 
of  Health  in  1885,  an  event  which  resulted  from  the  Plymouth  epidemic  of 
typhoid  fever,  where  in  a small  town  of  8,000  there  were  1,100  cases  and  114 
deaths,  all  of  which  were  due  to  the  pollution  of  .the  public  water  supply. 

In  the  third  chapter  each  of  the  principal  functions  of  a central  sanitary 
authority  is  separately  treated. 

In  the  chapter  relating  to  Vital  Statistics  the  writer  points  out  the 
proper  remedies  .for  perfecting  the  system  of  registration:  (1)  The  estab- 

lishment of  health  authorities  in  every  town  in  the  state;  (2)  the  establish- 
ment of  county  experts  in  statistics;  (3)  the  enlistment  of  the  services,  either 
by  compulsion  or  compensation,  of  every  physician,  midwife,  clergyman,  magis- 
trate or  undertaker,  who  may  officiate  at  births,  marriages,  deaths,  burials 
or  attend  upon  infectious  cases ; and  lastly,  the  State  Board  should  be  given 
funds  sufficient  to  execute  existing  laws  where  local  authorities  are  incom- 
petent. 

To  these  items  we  would  add  that  much  importance  may  properly  be 
attached  to  the  existence  of  adequate  legal  penalties  for  neglect  and  refusal 
to  comply  with  the  provisions  of  such  laws  as  may  be  enacted,  as  well  as  the 
placing  of  the  enforcement  of  such  laws  in  the  hands  of  properly  qualified 
magistrates. 

The  power  to  abate  local  nuisances  appears  to  have  been  conferred  upon 
the  State  Board  of  Health  of  Pennsylvania.  This  mistaken  policy  is  shown 
in  the  fact  that  the  State  Board  of  Health  in  a single  year  abated  102  local 
nuisances.  “It  must  be  asserted,  however,  that  the  central  authority  was 
designed  for  higher  purposes  than  local  scavenging.”  “As  at  present  acting, 
our  state  administration  of  the  elaborate  sanitary  code  has  degenerated  into 
mere  nuisance  abatement.  Central  control  means  here  local  irresponsibility. 
Our  board  is  discharging  the  same  executive  functions  as  the  town  constable 
of  the  time  of  Queen  Elizabeth.” 

Those  portions  of  the  monograph  which  relate  to  local  questions  are 
illustrated  with  Several  valuable  tables,  giving  the  population  of  different 
groups  of  towns,  their  death-rates,  number  of  nuisances  reported,  salaries 
of  health  officials  and  facts  relating  to  vaccination. 

S.  W.  Abbott. 

Massachusetts  State  Board  of  Health,  Boston. 


Human  Nature  and  the  Social  Order.  By  Charles  Horton  Cooley.  Pp. 
viii,  413.  Price,  $1.50.  New  York:  Charles  Scribner’s  Sons. 

In  “Human  Nature  and  the  Social  Order”  Professor  Cooley  aims  to  set 
forth  “what  the  individual  is  considered  as  a member  of  a social  whole.” 
Current  social  theory  is  wrong  in  its  treatment  of  the  individual  for  a 
“separate  individual  is  an  abstraction  unknown  to  experience  and  ‘society’ 
and  ‘individual’  do  not  denote  separable  phenomena,  but  are  collective  and 


106  The  Annals  of  the  American  Academy 

distributive  aspects  of  the  same  thing.”  “Individuality  is  neither  prior  in  time 
nor  lower  in  rank  than  sociality — the  line  of  progress  is  from  a lower  to  a 
higher  type  of  both,  not  from  one  to  the  other.”  Society  “in  its  immediate 
aspect  is  a relation  among  personal  ideas.”  “The  imaginations  which  people 
have  of  one  another  are  the  solid  facts  of  society,  and — to  observe  and 
interpret  these  must  be  the  chief  aim  of  sociology.”  “Self  and  other  do  not 
exist  as  mutually  exclusive  social  facts.”  Professor  Cooley  does  not  deny 
personal  opposition,  but  claims  that  “it  does  not  rest  upon  any  such  essential 
and,  as  it  were  material  separableness  as  the  common  way  of  thinking 
implies.”  “Society  is  rather  a phase  of  life  than  a thing  by  itself ; it  is  life 
regarded  from  the  point  of  view  of  personal  intercourse.  And  personal  inter- 
course may  be  considered  either  in  its  primary  aspects,  such  as  are  treated  in 
this  book,  or  in  secondary  aspects,  such  as  groups,  institutions  or  processes. 
Sociology,  I suppose,  is  the  science  of  these  things.” 

Professor  Cooley  has  been  allowed  to  speak  for  himself  that  some  idea 
might  be  given  of  his  method  and  manner.  His  treatment  of  his  subject  is 
entirely  from  a psychological  viewpoint.  The  style  of  the  book  is  clear  and 
attractive,  the  text  abounding  in  happy  quotations.  In  an  interesting  way  the 
author  deals  with  sympathy,  hostility,  emulation,  leadership,  conscience,  the 
meaning  of  “I,”  personal  degeneracy,  freedom. 

We  are  indebted  to  Professor  Cooley  for  a stimulating  and  suggestive 
discussion.  The  book  must  be  read — and  read  carefully — to  catch  its  full 
import.  There  will  be  many  to  object  to  his  classification  of  sociology  as  a 
purely  subjective  science.  In  his  desire  to  set  forth  the  psychological  ele- 
ments the  author  seems  to  lose  touch  with  the  material  basis  both  of  individ- 
ual and  social  existence.  Certainly  some  of  the  motive  forces  do  not  spring 
from  what  we  know  as  the  mind.  This  by  no  means  contradicts  the  author’s 
claim  that  “any  study  of  society  that  is  not  supported  by  a firm  grasp  of  per- 
sonal ideas  is  empty  and  dead.” 

Carl  Kelsey. 

University  of  Pennsylvania. 


Studies  in  the  Evolution  of  Industrial  Society.  By  Richard  T.  Ely,  Ph.  D., 
LL.  D.  Pp.  vii,  497.  Price,  $1.25  net.  New  York:  The  Macmillan  Com- 
pany, 1903. 

Professor  Ely  has  done  more  perhaps  than  any  other  economist  to  popu- 
larize the  study  of  economic  questions,  and  in  this,  his  latest  addition  to  the 
Citizen’s  Library  of  Economics,  Politics  and  Sociology,  he  has  not  departed 
from  the  tradition  already  established  in  this  direction.  In  his  usual  facile 
■style  he  has  made  an  excursion  into  that  “general  borderland  where  eco- 
nomics, ethics,  biology  and  sociology  meet,”  such  as  is  bound  to  arouse 
popular  discussion  and  interest.  The  fact  that  nothing  new  is  brought  out 
in  the  work  and  that  because  of  its  wide  scope  and  consequent  brevity  but 
little  is  conclusive,  does  not  detract  from  its  usefulness. 

The  book  is  divided  into  two  parts  of  unequal  length,  the  first  and 
shorter  one  serving  as  an  historical  sketch  of  the  development  of  industrial 


Studies  in  the  Evolution  of  Industrial  Society  107 

society,  introductory  to  the  discussion  of  special  problems  in  Part  II.  Part  I, 
the  working  out  of  which  probably  suggested  the  title  of  the  book,  traces 
the  evolution  of  industrial  organization  from  its  beginnings  in  the  period 
of  savagery  to  its  complex  arrangement  at  the  present  day.  The  criterion 
of  classification  followed  is  that  of  change  in  methods  of  production,  rather 
than  that  of  the  developing  of  successively  larger  industrial  units,  of  new 
processes  of  exchange,  of  new  types  of  labor  or  of  new  stages  of  mental 
development,  although  each  of  these  receives  a share  of  attention  and  all  are 
helpfully  grouped  in  a table  for  purposes  of  comparison.  Society  is  viewed 
as  an  organism  and  the  study  of  its  industrial  progress  as  but  one  of  the 
many  phases  of  its  growth.  Herbert  Spencer’s  general  and  external  inter- 
pretation of  evolution  is  casually  applied  to  the  matter  under  discussion 
from  time  to  time — a method,  which  though  hardly  of  permanent  scientific 
value,  is  yet  immensely  suggestive  to  beginners.  There  is  much  that  is 
stimulating  in  the  treatment  of  economic  classes.  Their  existence  in  this 
•country  is  clearly  recognized ; but  Professor  Ely  with  his  healthful  optimism 
sees  forces  at  work  making  for  the  attainment  of  friendly  and  harmonious 
■co-operation  of  classes.  In  the  discussion  of  recent  tendencies  much  is 
brought  forward  to  bear  out  this  view.  It  is  questionable,  however,  whether 
he  is  justified  in  considering  public  ownership  of  natural  monopolies,  and 
private  ownership  with  attempted  public  control,  as  respectively  Teutonic 
and  Latin  in  tendency. 

Part  II  is  made  up  in  the  main  of  a number  of  articles,  addresses  and 
reviews  previously  printed  elsewhere,  embodying  Professor  Ely’s  well-known 
utterances  on  a variety  of  topics  of  current  interest.  The  first  three  chapters 
are  of  fundamental  interest  and  importance,  and  they  possess  a unity  of 
treatment  that  is  lacking  in  the  later  portion  of  the  book.  These  chapters 
deal  with  the  relation  of  the  process  of  evolution  to  race  progress.  Much  of 
the  literature  bearing  on  this  topic  is  helpfully  reviewed  and  many  apt  criti- 
cisms are  made.  Particularly  significant  are  various  hints  suggestive  of  lines 
of  investigation  which,  if  followed  out,  would  give  us  some  indication  as  to 
whether  the  race  is  improving  or  degenerating  under  the  influence  of  modern 
altruism.  On  the  other  hand,  the  discussion  is  not  always  clear,  and  our 
need  of  a definite  and  fixed  use  of  terms  is  nowhere  more  clearly  shown  than 
here.  For  instance,  instead  of  the  test  of  a good  social  measure  being  its 
capacity  for  strengthening  “the  individual  and  the  group  for  competition 
[i.  e.,  for  struggle],”  the  criterion  should  rather  be  that  of  helpfulness  in 
furthering  the  process  of  individual  and  social  adaptation. 

So  far  as  there  is  any  central  or  dominating  idea  in  the  remaining 
chapters,  it  turns  on  the  problem  of  monopoly  and  its  sister  questions,  the 
integration  of  industry  and  the  concentration  of  wealth.  Although  the  scale 
of  organization  seems  gradually  to  be  enlarging,  Professor  Ely  sees  no  reason 
to  accept  the  position  “that  our  present  industrial  evolution  is  bound  to 
terminate  in  general  monopoly” ; and  though  there  seems  to  be  a tendency 
toward  the  concentration  of  wealth,  he  is  extremely  hopeful  that  the  “dawn- 
ing self-consciousness  of  society  will  ultimately  lead  to  a wide  diffusion 
•of  the  ‘advantages  of  civilization.’  ” 


[519] 


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The  Annals  of  the  American  Academy 


On  the  whole,  apart  from  Part  I,  which  might  well  be  used  in  the  class- 
room as  an  introduction  to  the  study  of  elementary  economics,  it  may  be 
said  of  the  work  that  its  chief  value  lies  not  on  the  academic  side,  but  on  the 
side  of  the  suggestiveness  of  its  reasoning  and  of  its  inspiring  moral  tone 
to  the  more  thoughtful  portion  of  the  general  public. 

Roswell  C.  McCrea. 

Bowdoin  College,  Brunswick,  Maine. 


Social  Origins.  By  Andrew  Lang.  Primal  Law.  By  J.  J.  Atkinson.  Pp. 

xviii,  31 1.  Price,  $3.60.  New  York:  Longmans,  Green  & Co.,  1903. 

As  the  above  titles  indicate,  this  work  contains  the  investigations  of  two- 
authors.  As  there  is  no  necessary  dependence  of  the  two  parts  it  matters  not 
which  is  read  first.  “Primal  Law”  traces  society  upward  from  some  apelike 
ancestor,  while  the  law  itself  is  the  fundamental  principle  in  accordance  with 
which  man  and  society  have  evolved.  In  “Social  Origins”  Mr.  Lang  deals 
with  “the  present  state  of  the  discussion  as  to  the  beginning  of  the  rules 
regulating  marriage  among  savages,”  and  in  doing  so  he  presents  the  views 
of  McLennan,  Morgan,  Crawley,  Frazer,  Spencer,  Tylor,  Avebury,  Wester- 
marck,  Durkheim  and  others.  The  author  has  views  of  his  own  which  he 
states  with  clearness  and  force.  For  instance,  he  claims  that  exogamy  became 
fully  developed  “when  the  hitherto  anonymous  groups,  coming  to  be  known 
by  totem  names,  evolved  the  totem  superstitions  and  tabus.”  Prior  to  this, 
it  only  tended  to  arise  for  various  reasons,  among  which  are  enumerated 
sexual  jealousy,  sexual  superstition  and  “sexual  indifference  to  persons 
familiar  from  infancy.”  It  will  be  seen  that  this  view  is  opposed  to  the 
one  presented  by  Mr.  Atkinson  in  the  second  part  of  the  book. 

In  “Primal  Law,”  Mr.  Atkinson  bases  his  theory  on  the  assumption  that 
our  anthropoid  ancestor  was  unsocial.  He  believes  that  the  human  race 
descended  from  a single  pair,  and  promiscuity  in  the  primitive  stage  is 
rejected  as  improbable.  The  ancestor  of  man,  it  is  asserted,  lived  in  small 
communities,  each  with  a single  wife  or  several  who  were  jealously  guarded 
from  all  other  men.  Male  members  of  the  family  grown  to  adolescence 
were  objects  of  suspicion,  and  were  driven  from  the  group.  Finally  mother 
love  asserted  itself  in  defence  of  the  youngest  male  child,  and  he  was  allowed 
to  remain.  However,  this  younger  male  member  of  the  family  was  retained 
only  on  condition  that  the  marital  rights  of  the  senior  would  be  respected 
as  extending  over  all  the  women  of  the  horde.  Brother  and  sister  avoidance 
became  absolute.  Marriage  of  the  junior  member  would  depend  upon  the 
capture  of  a wife  in  another  group  and  here  appears  the  origin  of  exogamy. 
“Hence  comes  the  evident  corollary  to  the  argument  that  the  primal  law  and 
exogamy  stand  to  each  other  in  the  mutual  relation  of  cause  and  effect.”22  By 
degrees,  male  members  would  be  permitted  to  remain  in  the  family,  and  these 
in  turn  would  secure  brides  from  another  horde.  With  the  growth  of  intel- 
ligence, the  marital  relations  of  the  head  of  a family  with  the  daughters 


22  Page  247. 


[520] 


Early  Political  Machinery  in  the  United  States  109 

■ceased,  and  brothers  began  to  exchange  their  sisters  for  brides.  In  brief, 
this  is  the  theory  of  J.  J.  Atkinson  of  the  origin  of  marriage  and  endogamy — 
a theory  as  novel  as  it  is  interesting. 

J.  E.  Hagerty. 

University  of  Ohio. 


Early  Political  Machinery  in  the  United  States.  By  George  D.  Luetscher, 

Ph.  D.  Pp.  160.  Price,  $1.00.  Published  by  the  author,  George  School, 

Pa.,  1903. 

Although  popular  interest  in  our  nominating  systems  has  greatly  increased 
in  recent  years,  comparatively  little  aside  from  propaganda  literature  has 
appeared  on  the  subject.  Dahlinger’s  standard  work  and  that  of  Dr.  Meyer 
in  advocacy  of  direct  primaries  are  the  principal  important  exceptions. 
Dr.  Luetscher’s  monograph,  although  entitled  “Political  Machinery,”  in 
reality  deals  primarily  with  the  methods  of  nomination  practiced  up  to  1825. 
He  shows  that  the  nationalizing  of  parties  during  Washington’s  second  admin- 
istration marked  the  beginning  of  a revolution  in  the  methods  of  nomina- 
tion and  political  campaigning.  “Before  this  time,”  he  says,  “politics  and 
office-holding  were  confined  to  the  ‘well-born,’  who  constituted  the  enlightened 
minority,  and,  as  a consequence,  the  greatest  apathy  and  indifference  prevailed 
among  the  individual  electors  regarding  the  selection  of  candidates  to  office 
and  the  exercise  of  suffrage.  . . . The  nation  was,  therefore,  inexperienced 

in  democratic  organization,  when  the  administrative  measures  of  Hamilton 
supplied  a permanent  issue  upon  which  the  people  took  sides.”  The  Repub- 
licans being  the  newer  party  and  having  to  make  the  most  strenuous  efforts 
for  popular  favor  were  naturally  the  first  to  adopt  new  methods.  Nearly  all 
the  leading  newspapers  were  Federal  in  sympathy.  The  wealth  of  the  country 
and  such  advantage  as  came  from  political  patronage  at  the  time  were  favor- 
able to  the  older  party.  Necessarily,  therefore,  the  Republicans  devoted 
their  attention  to  a distinctly  popular  method  of  nominating  candidates.  At 
first  the  mass-meeting  was  the  principal  method  adopted,  but  as  larger  num- 
bers of  the  people  were  appealed  to  a more  representative  form  of  party 
organization  had  to  be  evolved,  and  the  convention  system  came  into  exist- 
ence. By  the  nature  of  the  case  the  New  England  and  Southern  States  were 
backward  in  adopting  this  new  plan.  In  New  England  the  town  candidates 
were  chosen  in  mass-meeting  of  the  town ; the  state  candidates  were  chosen 
by  the  general  legislative  caucus,  as  throughout  the  rest  of  the  country.  In 
addition  to  this  the  New  England  Federal  leaders  were  opposed  to  any 
■extensive  party  organization  in  peaceful  times.  They  regarded  the  formation 
of  party  committees,  conventions,  and  such  machinery,  as  an  emergency 
measure  which  might  well  be  adapted  to  the  vicissitudes  of  a revolution,  but 
hardly  permissible  after  the  emergency  had  passed.  In  the  Southern  States 
the  aristocratic  cast  of  politics  had  led  to  traditions  which  forbade  any 
extensive  popular  agitation.  The  leaders  of  thought  largely  dictated  nomina- 
tions. It  was,  therefore,  in  the  Middle  States,  where  popular  election  of 
county  officers  had  become  the  tradition,  that  a county  convention  was  first 
developed.  Such  was  the  efficiency  of  the  early  county  convention  in  enlist- 

[521] 


IIO 


The  Annals  of  the  American  Academy 


ing  the  interest  of  the  people  that  it  spread  rapidly  throughout  the  more 
important  Middle  States  and  resulted  in  the  permanent  defeat  of  the  Fed- 
eral party  in  the  Middle  States  by  1802,  except  in  the  State  of  Delaware, 
where  the  Federalists  adopted  the  convention  system  and  thereby  maintained 
their  hold  on  the  people.  It  is  Dr.  Luetscher’s  aim  to  show  that  the  combat 
between  the  Federal  and  Republican  parties  was  more  than  a conflict  of  ideas 
and  measures, — it  was  a difference  in  political  machinery.  Had  the  Federalists 
accepted  Hamilton’s  suggestion  and  adopted  a thorough-going  popular  propa- 
ganda for  their  principles,  the  author  implies  that  they  might  have  held  the 
attention  and  support  of  the  people  as  against  the  opposition.  This  stand- 
point differs  from  the  conventional  and  accepted  view  regarding  the  two 
parties.  Emphasis  has  heretofore  been  placed  almost  exclusively  upon  the 
party  programs  of  the  time  and  on  the  traditional,  aristocratic  leanings  of  the 
Federalists.  The  author  does  not  deny  the  importance  of  these  factors,  but 
points  out  that  the  absence  of  proper  machinery,  or  rather  the  unwillingness 
of  the  Federal  leaders  to  make  use  of  the  perfectly  proper  methods  adopted 
by  their  rivals,  placed  the  former  in  a position  of  complete  helplessness. 
This  weakness  of  a party,  whose  leaders  had  been  strongly  entrenched  in 
nation,  state  and  city  can,  by  no  means,  be  fully  accounted  for  solely  on  the 
ground  of  a radical  change  in  the  ideas  of  the  people. 

In  the  course  of  his  argument  the  author  gives  a very  interesting  dis- 
cussion of  the  early  limitations  on  suffrage  in  the  Middle  States  and  has 
been  at  considerable  pains  to  collect  from  the  various  state  archives  and 
from  the  early  files  of  newspapers  a number  of  conclusions  regarding  the 
proportion  of  the  voters  to  the  total  population  of  several  of  the  states.  In 
dwelling  upon  the  mechanism  of  parties,  Dr.  Luetscher  has  necessarily  ignored 
to  some  extent  the  conflict  of  principles  during  the  period  treated,  but  this  is 
incident  to  any  special  treatment  of  a single  phase  of  political  growth  and 
the  monograph  will  be  found  quite  helpful  in  correcting  the  existing  views  on 
our  early  political  parties. 

James  T.  Young. 

University  of  Pennsylvania. 


A History  of  Modern  Europe.  By  Merrick  Whitcomb,  Ph.  D.  Pp.  360. 

Price,  $1.10.  New  York:  D.  Appleton  & Co.,  1903. 

This  volume  on  the  history  of  modern  Europe  is  one  of  the  Twentieth 
Century  Text-books  Series,  in  which  the  field  of  general  European  history  is 
treated  in  two  volumes,  the  one  on  the  mediaeval  period  by  Professor  Munro, 
the  other  on  the  modern  period  by  Professor  Whitcomb.  Together  the  two 
volumes  furnish  an  adequate  text  for  European  history  from  the  time  of 
Charles  the  Great  to  the  present,  though  they  may  be  satisfactorily  used  inde- 
pendently of  each  other.  Like  its  counterpart,  the  present  volume  is  highly 
successful  in  clear  and  accurate  presentation  of  the  subject;  the  value  of  the 
deeper  insight  into  the  history  of  the  period  which  only  the  specialist’s  training 
can  give,  appears  constantly.  The  style  is  much  above  the  level  of  text-book 
writing.  Unfortunately  the  effect  of  this  is  too  often  sacrificed  by  the  great 
frequency  with  which  the  mechanical  devices  for  teaching  are  allowed  to 


A History  of  Modern  Europe 


hi 


break  the  continuity  of  the  narrative.  The  text-book  of  to-day  seems  to  suffer 
from  this  undue  emphasis  upon  tables,  bibliographical  references,  source- 
reviews,  etc.  From  the  standpoint  of  the  teacher  this  may  be  an  advantage, 
but  the  student  cannot  but  have  his  attention  dissipated  thereby.  In  justice  to 
the  present  work,  however,  it  should  be  said  that  the  helps  are,  in  so  far  as 
that  is  possible,  carefully  adapted  to  contribute  to  the  continuity  of  ideas. 

Good  judgment  is  shown  in  the  selection  of  material,  and  in  the  still 
more  difficult  task  of  determining  on  what  to  neglect.  The  chapters  on  the 
Renaissance,  on  Commerce  and  several  of  those  on  the  Nineteenth  Century 
will  illustrate  this.  At  times,  however,  too  much  is  neglected  and  one  looks 
in  vain  for  facts  usually  considered  important.  In  the  section  on  France  in 
the  chapter  on  the  Rise  of  the  Modern  Nations,  there  is  no  mention  of  the 
work  of  Louis  XI.  or  of  the  territorial  unification,  an  omission  scarcely 
atoned  for  by  the  excellent  treatment  of  the  legal  phases  of  the  new  institu- 
tions. The  question  will  also  arise  whether  the  statement  that  the  maxims  of 
the  legists  of  the  fourteenth  century,  that  “The  King’s  will  is  law,”  that 
“All  justice  emanates  from  the  King,”  are  the  fundamental  principles  of 
modern  government,  will  not  be  misleading  to  the  pupil.  Occasionally  the 
desire  for  detail  as  to  personal  history  is  yielded  to,  as,  for  example,  the  names 
of  Henry  VIII.’s  wives  with  dates,  when  less  than  two  pages  can  be  spared 
for  the  Reformation  in  England. 

The  illustrations  are  numerous  and  well  chosen.  They  do  more  than 
illustrate,  for  many  are  taken  from  contemporary  prints  or  paintings,  and 
therefore  serve  as  primary  source-materials.  The  same  can  scarcely  be  said 
of  the  so-called  source-review  appended  to  each  chapter  division.  Why 
extracts  from  Carlyle’s  “Frederick  the  Great,”  Martin’s  “Popular  History  of 
France,”  McCracken’s  “Swiss  Republic,”  Fyffe’s  “Modern  Europe,”  etc.,  should 
be  thus  designated  is  not  readily  apparent.  The  fact  that  many  excellent 
citations  from  original  sources  occur  under  this  head  serves  only  to  confuse 
the  essential  distinction  between  primary  and  secondary  authorities. 

The  general  plan  of  the  treatment  is  distinguished  from  other  text-books 
that  have  preceded  it  in  the  greater  emphasis  laid  upon  contemporary  history. 
Fully  one-half  of  the  book  is  devoted  to  the  period  since  1815,  a distribution 
of  space  which  allows  a much  fuller  account  of  the  nineteenth  century  than  is 
usual  in  text-books  of  this  size.  In  this  the  author  is  clearly  in  line  with  a 
popular  tendency,  and  many  will  look  upon  this  as  one  of  the  strong  features 
of  the  book.  In  lamenting  the  contraction  of  the  earlier  centuries  thereby 
necessitated,  Professor  Whitcomb  expresses  the  feeling  adequately.  “Our 
forefathers,”  he  says,  “were  content  with  classical,  and  often  with  mythical 
personages ; we  have  been  made  to  comprehend  our  Luther  and  Loyola,  our 
Mirabeau  and  Napoleon ; and  our  children  will  have  to  make  room  for  their 
Cavour,  their  Bismarck  and  their  Gladstone.  It  is  a choice  of  benefits,  and 
there  are  many  substantial  reasons  why,  in  the  building  up  of  a system  of 
popular  education,  the  present  should  not  be  sacrificed  to  the  past.” 

The  maps  interspersed  throughout  the  book  are  good,  and  well  adapted 
to  make  clear  the  political  geography  treated  in  the  text.  At  the  end  is  a 
list  of  leading  events  and  an  index.  W.  E.  Lingelbach. 

[523] 


University  of  Pennsylvania. 


12 


The  Annals  of  the  American  Academy 


Americans  in  Process;  A Settlement  Study.  By  Residents  and  Associates 

of  the  South  End  House.  Edited  by  Robert  A.  Woods.  Pp.  xii,  389. 

Price,  $1.50.  Boston:  Houghton,  Mifflin  & Co.,  1902. 

The  residents  and  associates  of  South  End  House  have  completed 
another  valuable  settlement  study  of  Boston’s  crowded  districts.  ‘‘Americans 
in  Process”  does  for  the  North  and  West  Ends  what  the  “City  Wilderness” 
did  for  the  South  End.  Beginning  with  a brief  geographical  and  historical 
sketch,  showing  how  the  island  was  transformed  into  mainland,  and  the 
gradual  growth  of  the  network  of  crooked  streets  which  provided  sanitary 
and  building  problems  for  future  generations  to  solve,  the  decadence  of  old 
Boston  is  outlined.  The  North  End  lost  its  aristocratic  population  in  1775, 
but  the  West  End  prospered  as  a center  of  homes  until  after  1850.  First  the 
Irish,  then  lodging  and  boarding  houses  in  the  West  End,  and  finally  an 
invading  host  of  foreigners  drove  away  the  American  residents ; the  North 
End  becoming  a city  of  Italians,  Jews,  Portuguese  and  a residue  of  Irish; 
the  West  End,  the  same  with  some  negroes  and  a few  remaining  Americans. 

The  efforts  to  improve  sanitary  and  tenement  house  conditions,  the 
means  of  livelihood  of  the  various  races,  their  crimes  and  misdemeanors,  and 
the  influence  and  extent  of  the  two  ancient  faiths  which  dominate  this  region 
— all  receive  attention.  Political  conditions  with  the  Irish  in  control  have 
a peculiar  significance  for  these  districts.  The  descriptions  of  the  leaders, 
and  their  means  of  maintaining  control,  are  an  addition  to  municipal  litera- 
ture on  the  subject.  The  chapter  on  Life’s  Amenities — the  people  in  their 
playtime  and  holiday  garb — is  sympathetically  written  and  full  of  interest. 
“The  Child  of  the  Stranger,”  also,  shows  what  the  public  schools  are  doing 
for  these  children.  Seventy-five  per  cent  never  reach  the  eighth  grade. 
Half  the  children  who  leave  the  seventh  grade  in  June,  do  not  reappear  in 
September.  The  girls  marry  very  young  and  for  them  correct  ideas  of  life 
and  freedom  from  superstition  are  especially  needed.  Philanthropic  agencies 
are  treated  under  “Community  of  Interest.” 

The  careful  descriptions,  successful  choice  of  material  and  excellent 
maps  give  the  reader  a good  idea  of  this  new  Boston.  They  do  more,  they 
show  the  citizens  of  other  cities  how  much  Boston  has  already  done  to 
improve  conditions  by  satisfactory  legislation  for  tenement  houses,  sanitation 
and  the  removal  of  vicious  resorts;  by  removing  sweatshops;  and  by  pro- 
viding parks,  gymnasiums,  baths  and  improved  methods  in  public  schools. 
At  the  same  time  the  serious  obstacles  to  a true  Americanizing  process  are 
emphasized  with  a word  of  warning  that  assimilation  is  a two-edged  sword 
and  that  the  whole  community  is  affected  by  conditions  in  the  North  and 
West  Ends.  This  is  illustrated  by  the  close  connection  between  Dorchester 
and  North  End  politicians. 

The  main  lines  indicated  for  social  progress  are:  strict  laws  for  the 
residue  of  tramps  and  paupers  who  congregate  in  these  regions,  and  for  the 
disabled ; every  assistance  for  those  with  ability  to  rise,  especially  an  allay- 
ing of  racial  prejudices  which  hamper  the  bright  young  Jew  or  Italian;  and 
for  the  majority,  the  encouragement  of  all  kinds  of  associations, — trades 
unions,  clubs,  neighborhood  gatherings, — and  above  all,  industrial  training, 
especially  for  the  children.  \ Z2A^ 


Americans  in  Process;  A Settlement  Study  113 

Of  the  people  themselves,  the  negroes  present  the  most  serious  problem, 
and  they,  with  the  off-scouring  of  other  nationalities,  will  constitute  the 
slums.  The  Irish  advance  in  a body,  and  they  have  largely  left  these  dis- 
tricts. The  North  End  is  becoming  the  Italian  stronghold,  the  West  End 
will  soon  be  in  the  possession  of  Jews.  Both  races  are  characterized  by  a 
high  degree  of  industry,  sobriety  and  domestic  peace.  For  one  the  goal 
of  efforts  is  the  simple  joys  of  life;  for  the  other,  prosperity. 

Emily  Fogg  Meade. 


Philadelphia. 


BOOKS  RECEIVED  FROM  AUGUST  i TO  OCTOBER  i,  1903. 


Adler,  M.,  Die  Anfange  der  Merkantilistischen  Gewerbepolitik  in  Oesterreich.  Leipzig:: 
Franz  Deuticke,  3.60m. 

Allman,  J.,  God’s  Children,  A Modern  Allegory.  Chicago:  C.  H.  Kerr  & Co.  $0.50. 

Anthracite  Coal  Strike,  Report  to  the  President  by  the  Anthracite  Coal  Strike  Commission* 
Washington:  Government  Printing  Office. 

Ashley,  W.  J.,  Adjustment  of  Wages.  Longmans,  Green  & Co.  $4.00. 

Bain,  A.,  Dissertations  on  Leading  Philosophical  Topics.  Longmans.  $2.50. 

Blair,  E.  H.  & Robertson,  J.  A.,  Philippine  Islands,  Vol.  V.  Cleveland:  Arthur  H. 
Clark  Co.  $4.00. 

Buell,  A.  C.,  Sir  William  Johnson.  Appleton.  $1.00. 

Ellis,  W.  H.,  Municipal  Code  of  Ohio.  Cincinnati:  W.  H.  Anderson  Co.  $3.50. 

Engels,  F.,  Feuerbach.  Translated  by  Austin  Lewis.  C.  H.  Kerr  & Co.  $0.50. 

Halsey,  F.  W.,  Pioneers  of  Unadilla  Village.  Unadilla,  N.  Y. : Vestry  of  St.  Matthew’s 
Church.  $2.00.  ' 

Hart,  A.  B.,  Actual  Government.  Longmans.  $2.00. 

Higher  Commercial  Education,  Papers  read  at  Convention,  Michigan  Political  Science  Asso- 
ciation, Feb.  4-7,  1903. 

Judson,  H.  P.,  Essentials  of  a Written  Constitution.  Chicago:  University  Press.  $0.50. 

Laughlin,  J.  L.,  Credit.  Chicago:  University  Press. 

Lavisse,  E.,  Histoire  de  France,  Vol.  I,  part  1.  Paris:  Hachette  & Cie. 

v.  Mayr,  Georg,  Die  Bevolkerung  der  Groszstadte. 

Montague,  G.  H.,  Rise  and  Progress  of  the  Standard  Oil  Company.  Harpers.  $1.00. 

National  Municipal  League — Proceedings  of  Detroit  Conference,  and  Ninth  Annual  Meet- 
ing.  1903.  Philadelphia:  National  Municipal  League. 

Paxson,  F.  L.,  Independence  of  the  South-American  Republics.  Philadelphia:  Ferris  & 
Leach.  $2.00. 

Peabody,  H.  G.,  Glimpses  of  the  Grand  Canyon  of  Arizona.  Kansas  City:  Fred.  Harvey.. 
$1.25. 

Scott,  J.  B.,  Cases  on  International  Law.  Boston:  Boston  Book  Co. 

Spears,  J.  R.,  Anthony  Wayne.  Appleton.  $1.00. 

Stearns,  F.  P.,  Napoleon  and  Machiavelli.  Cambridge:  Riverside  Press. 

Steinmetz,  S.  R.,  Rechtsverhaltnisse  von  eingeborenen  Volkern  in  Afrika  und  Ozeanien.. 
Berlin:  Julius  Springer.  10 m. 

Thomas,  W.  I.,  Relation  of  the  Medicine-Man  to  the  Origin  of  the  Professional  Occupations* 
Chicago:  University  Press.  $0.25. 

Veblen,  T.  B.,  Use  of  Loan  Credit  in  Modern  Business.  Chicago:  University  Press.  $0.25. 

Verhandlungen  des  Deutschen,  Kolonialkongresses,  1902.  Berlin:  Deitrich  Reimer.  Fest- 
schrift zum  Deutschen,  Kolonialkongresz.  1902. 

Wallis,  L.,  An  Examination  of  Society  from  the  Standpoint  of  Evolution.  Columbus,  O.  t 
Argus  Press.  $1.75. 

Wrong,  G.  M.,  The  British  Nation.  Appleton. 


NOTES 


I.  MUNICIPAL  GOVERNMENT 

AMERICA/N  CITIES 

St.  Louis.1 — Street  Railway  Franchises.  The  conditions  under  which 
street  railway  franchises  are  granted  are  governed  by  Article  III  of  the 
city  charter,  which  gives  to  the  mayor  and  assembly  the  power  to  take  all 
needful  steps,  in  and  out  of  the  state,  to  protect  the  rights  of  the  city,  in  any 
corporation  in  which  the  city  may  have  acquired  an  interest;  to  have  sole 
power  and  authority  to  grant  to  persons  or  corporations  the  right  to  construct 
railways  in  the  city,  subject  to  the  right  to  amend,  alter  or  repeal  any  such 
grant  in  whole  or  in  part,  and  to  regulate  and  control  the  same,  as  to  their 
fares,  hours  and  frequency  of  trips,  and  the  repair  of  their  tracks,  and  the 
kind  of  their  rails  and  vehicles ; but  every  right  so  granted  shall  cease,  unless 
the  work  of  construction  shall  be  begun  within  one  year  from  the  granting 
of  the  right,  and  be  continued  to  completion  with  all  reasonable  practical 
speed,  and  it  shall  be  the  cause  of  forfeiture  of  the  rights  and  privileges 
derived  from  the  city,  of  any  railroad  company  operating  its  road  only  within 
this  city,  which  shall  allow  any  person  to  ride  or  travel  on  it  gratuitously  or 
for  less  than  usual  price  of  fare,  unless  such  person  be  an  officer  or  employee 
of  such  company. 

The  number  of  miles  of  lines  in  operation  and  the  payments  into  the  city 
treasury  during  the  last  ten  years  have  been  as  follows : 


Year  ending  in  Number  of  Amount  of 

Month  of  April  Miles  Payments 

1894  296.9  $23,071  II 

1895  300.8  29,587  10 

1896  283.22  48,514  19 

1897  299.31  69,817  40 

1898  300.04  5I,8o8  52 

1899  300.13  8l,l8l  30 

1900  31775  75780  97 

1901  336.09  78,861  55 

1902  329-86  98,053  79 

1903  327-86  105,857  78 


The  fare  charged  on  all  lines  is  five  cents.  The  street  railway  companies  of 
St.  Louis  are  controlled  by  two  corporations,  the  St.  Louis  Transit  Company 
and  the  St.  Louis  and  Suburban  Railway  Company.  The  companies  give 
transfers  over  their  own  lines,  but  there  is  no  interchange  system  of  transfers 
between  the  two  companies. 


1 Communication  of  James  G.  McConkey,  Secretary  to  the  Mayor  of  St.  Louis,  Mo. 

[527] 


1 1 6 The  Annals  of  the  American  Academy 

Buffalo.2 — Railway  Franchises.  Street  railway  franchises  in  Buffalo  are 
granted  under  the  following  provision  of  the  revised  city  charter,  to-wit : 

“The  common  council,  by  a vote  of  two-thirds  of  all  the  members  elected 
to  each  board,  may  permit  the  track  of  any  steam  railroad  or  railroad  oper- 
ated by  any  other  motive  power  and  used  for  purposes  other  than  the  trans- 
portation of  passengers  only,  to  be  laid  in,  along  or  across  any  street  or  public 
ground,  except  park  and  park  approaches.  Nothing  in  this  section  shall  prevent 
the  common  council,  by  a vote  of  two-thirds  of  all  the  members  elected  to 
each  board,  from  permitting  the  track  of  a street  railroad  used  solely  for  the 
transportation  of  passengers  within  the  city,  to  be  laid  in,  along  or  across  any 
street  or  public  ground,  except  parks  or  park  approaches,  subject  to  the  pro- 
visions of  any  law  then  existing  in  relation  thereto.” 

Payments  into  the  treasury  of  the  city  of  Buffalo  by  street  railways  were 
made  as  follows : 


January  i,  1892,  to  June  30,  1892 $15,072  06 

July  1,  1892,  to  June  30,  1893 27,445  06 

July  1,  1893,  to  June  30,  1894 29,962  14 

July  1,  1894,  to  June  30,  1895 39, 615  07 

July  1,  1895,  to  June  30,  1896 45, 613  74 

July  1,  1896,  to  June  30,  1897 45,294  68 

July  1,  1897,  to  June  30,  1898 48,219  62 

July  1,  1898,  to  June  30,  1899 4^,593  46 

July  1,  1899,  to  June  30,  1900 5T573  80 

July  1,  1900,  to  June  30,  1901 76,255  54 

July  1,  1901,  to  June  30,  1902 95, 760  04 


The  length  of  the  International  Traction  Company’s  railroad  lines  within 
the  city  limits  is  194  miles,  and  the  rates  of  fare  charged  are  five  cents  for  an 
adult  and  three  cents  for  a child  between  five  and  twelve  years  of  age,  children 
under  five  years  being  carried  free. 

Various  companies  constituting  the  International  Traction  Company  give 
transfers  over  all  lines  for  one  fare. 

Minneapolis.3 — Civic  Improvement  Associations.  Minneapolis  has  several 
societies  interested  in  municipal  improvements.  Most  of  these  organiza- 
tions are  local  outdoor  improvement  associations  which  confine  their  atten- 
tion to  well-defined  sections  of  the  city, — their  own  neighborhoods.  Among 
the  oldest  and  most  active  of  these  is  the  Portland  Avenue  Improvement 
Association.  It  has  been  in  existance  for  upwards  of  fifteen  years  and  has 
exerted  a marked  influence  in  securing  improvements  in  streets,  lawns 
and  parkways.  It  has  been  given  the  street-sprinkling  contract  in  its  vicinity 
by  the  city  for  some  years  in  competition  with  the  regular  contractors.  After 
paying  for  work  at  standard  wages  and  with  an  eight-hour  day,  the 
society  has  saved  enough  from  the  allowance  to  carry  on  important  improve- 
ment work.  Among  other  active  local  associations  of  this  kind  may  be  men- 

2 Communication  of  Frank  W.  Hinckley,  Secretary  to  the  Mayor,  Buffalo. 

8 Communication  of  William  A.  Schafer,  University  of  Minnesota,  Minneapolis. 


Municipal  Government 


117 


tioned  the  improvement  associations  in  Sunny  Side,  Oak  Park,  Linden  Hill 
and  Prospect  Park. 

Besides  the  local  associations  there  is  one  for  the  city  as  a whole,  the 
Minneapolis  Improvement  League,  of  which  Professor  W.  W.  Folwell,  of  the 
University  of  Minnesota,  is  president,  and  Mrs.  C.  W.  Keyes  is  secretary. 
This  organization  has  been  in  existence  since  1892.  A few  months  ago  an 
effort  was  made  to  get  all  the  local  societies  to  co-operate  through  the  league 
by  sending  delegates  to  the  regular  monthly  meetings  of  that  organization. 
That  plan  has  since  been  followed.  The  league  has  always  worked  in  close 
harmony  with  the  Park  Board,  in  whose  rooms  the  regular  monthly  meetings 
are  held.  During  the  last  few  years  the  league  has  awakened  a very  general 
interest  among  people  of  moderate  incomes  in  the  care  of  lawns,  back  yards  and 
streets,  also  among  school  children  in  improvement  and  care  of  playgrounds 
and  school  lawns.  This  was  done  through  a series  of  prizes  for  the  best 
effects  produced  and  through  suggestions  made  in  the  public  press  of  what 
might  be  accomplished  with  a little  effort  and  attention. 

Another  important  organization  interested  in  municipal  improvements  of 
all  kinds  is  the  Minneapolis  Commercial  Club.  The  public  affairs  committee 
of  that  club,  of  which  Wallace  G.  Nye  is  secretary,  takes  an  active  interest 
in  all  kinds  of  civic  improvements  and  co-operates  with  the  Improvement 
League  in  furthering  the  work  of  adding  to  the  city’s  outdoor  attractions. 

New  Jersey  State  Civic  Federation.4 — This  organization  is  made  up  of 
various  civic  and  municipal  leagues  formed  in  1902,  and  including  at  the 
present  writing  seventeen  clubs  which  bear  the  following: 

Board  of  Trade,  Asbury  Park,  N.  J. ; Civic  Club  of  Newark;  City 
Improvement  Society,  New  Brunswick,  N.  J. ; Civic  Association  of  Nutley; 
Town  Improvement  Association  of  Montclair;  Taxpayers’  Association,  Col- 
lingswood,  N.  J. ; West  End  Improvement  Association,  Irvington,  N.  J. ; 
Village  Improvement  Association,  Cranford,  N.  J. ; Vailsburgh  Social  Club; 
Civics  Club  of  the  Oranges ; Citizens’  Association,  Morristown,  N.  J. ; Second 
Ward  Improvement  Association,  Irvington,  N.  J. ; Board  of  Trade,  Hammon- 
ton,  N.  J. ; Town  Improvement  Society,  Summit,  N.  J. ; The  Good  Govern- 
ment Club,  Arlington,  N.  J. ; Civic  Sanitation  Association,  Orange,  N.  J. ; 
Orange  Political  Study  Club. 

The  Federation  originated  in  the  recognition  of  the  fact  that  there  were 
certain  questions  which  lay  naturally  beyond  the  province  and  power  of  any 
one  civic  organization,  questions  involving  more  than  one  municipality,  such 
as  matters  of  transportation,  taxation,  sewage  disposal,  the  transmission  of  light 
and  power,  and  questions  of  a similar  nature. 

The  responses  to  the  call  for  co-operation  were  very  favorable,  and  a 
number  of  organizations  joined  in  the  formation  of  a state  civic  federation. 
Eighteen  organizations  were  represented  at  the  first  meeting,  which  was  held 
in  Orange  in  the  latter  part  of  1902.  Matters  were  presently  put  in  such 
shape  as  to  make  it  possible  to  call  a general  conference  lasting  for  two  days. 
A number  of  speakers  were  present  from  various  localities  and  an  interesting 


4 Communication  of  Adolph  Roeder,  President  of  the  Federation,  East  Orange,  N.  J. 

[529] 


1 1 8 The  Annals  of  the  American  Academy 

meeting  was  the  result.  Since  its  formation  the  State  Civic  Federation  has 
received  into  membership  a number  of  other  organizations,  and  its  request  to 
mayors  and  executives  of  municipalities  that  they  join  in  membership  with 
the  organization  has  met  with  favorable  reception. 

The  general  plan  of  the  organization  is  to  ask  the  co-operation  of  each 
one  of  its  constituents  in  considering  whatever  questions  may  arise,  preparing 
a digest  of  their  considerations,  and  submitting  that  as  a report  to  one  of 
the  meetings  of  the  Executive  Board  or  to  the  annual  session  of  the  organi- 
zation. 

Thus  far  the  State  Civic  Federation  has  accomplished  the  following:  It 

has  created  a series  of  committees  on  the  following  general  lines:  Water  Sup- 
ply Franchises,  Taxation,  Liquor  Traffic,  Legislative  Measures,  Dependents, 
Delinquents  and  Municipal  Arts ; it  has  received  an  able  report  from  the 
first  two  committees  on  Water  Supply  and  on  Franchises.  It  has  reason  to 
believe  that  several  suggestions  made  in  the  latter  report  have  been  helpful 
in  two  or  three  municipalities  in  New  Jersey,  in  causing  discussion  of  fran- 
chises which  otherwise  would  have  been  granted  without  question ; it  has  pro- 
duced an  interchange  of  thought  and  of  opinion  among  its  constituents  which 
has  been  exceedingly  useful  and  helpful.  It  took  a prominent  part  in  calling 
the  attention  of  the  voters  to  various  favorable  and  unfavorable  aspects  of  the 
special  election  for  the  purpose  of  adopting  a constitutional  amendment  in 
reference  to  the  judiciary  of  the  state.  Through  its  activity,  as  manifested 
in  the  press  of  the  state,  it  was  found  that  the  method  of  procedure  was 
illogical  and  that  desirable  as  the  proposed  amendments  may  have  been  the 
method  of  securing  them  by  election  was  one  which  could  not  be  carried 
through.  The  amendments  were,  of  course,  lost,  owing  to  the  fact  that  no 
one,  from  the  election  officers  to  the  voters,  had  any  intelligent  grasp  of 
the  directions  for  voting.  The  Federation  tried  to  render  its  services  to 
its  constituents  and  to  the  state  by  simply  calling  attention  distinctly  to  the 
various  pros  and  cons  connected  with  constitutional  amendment  and  the 
method  of  securing  it,  but  ventured  no  opinions  whatever  on  the  relative 
material  of  the  various  sections  of  the  amendment,  since  it  left  that  discussion 
to  the  legal  fraternity  who  were  better  able  to  carry  it  forward. 

FOREIGN  CITIES 

England. — Sanitation  of  Congested  Areas.5  At  the  annual  conference  of 
the  Royal  Institute  of  Public  Health,  held  at  Liverpool,  on  the  sixteenth  of 
July,  1903,  considerable  attention  was  paid  to  the  question  of  rehousing  the 
poor  on  the  outskirts  of  the  larger  cities. 

In  the  Section  on  Sanitation  of  Congested  Areas,  Mr.  Austin  Taylor,  M.  P., 
Liverpool,  presided,  and  said  that  they  were  only  on  the  threshold  of  an 
enormous  slum  problem — a monster  whose  outward  aspect  was  one  of  bricks 
and  mortar,  but  in  the  interior  dark  with  the  tragic  fate  of  men,  women,  and 
especially  children,  whose  dreary  mechanical  life  was  only  ended  by  death. 

5 This  account  of  the  conference  is  taken  from  a report  made  to  the  Department  of 
State  by  the  American  Consul  at  Birmingham,  Hon.  Marshal  Halstead. 


Municipal  Government 


119 

It  was  useless  to  cure  plague  spots  in  the  center  of  the  cities  and  to  let  the 
outlying  belt  grow  up  in  a haphazard  fashion.  He  suggested  that  municipali- 
ties should  be  allowed  to  buy  land  three  miles  outside  their  boundaries,  where 
streets  could  be  laid  out  on  model  lines,  trees  preserved,  and  a general  style 
of  architecture  insisted  upon.  There  must  be  expansion  to  cure  congestion, 
and  for  that  purpose  he  also  advocated  the  compulsory  acquirement  of  suit- 
able areas  on  moderate  terms,  the  reduction  of  interest  on  public  loans  for 
demolition  and  rehousing,  and  rating  of  vacant  sites  on  their  capital  value,  by 
which  model  dwellings  could  be  erected  at  not  greater  rent  than  one  shilling 
(24  cents)  per  room  weekly. 

Dr.  James  Niven,  medical  officer  for  Manchester,  in  a paper  on  “Rehous- 
ing the  Poor  on  the  Outskirts  of  Large  Cities,”  said  it  was  generally  recog- 
nized an  effort  should  be  made  by  the  sanitary  authorities  to  house  as  many 
as  possible  of  the  poorer  working-class  families  on  the  outlying  parts  of  these 
districts,  under  the  improved  conditions  of  light,  air,  space,  and  construction 
•of  dwellings.  So  far,  efforts  in  this  direction  had  been  the  result  of  private 
enterprise  and  confined  to  persons  above  the  laboring  classes.  A great  impulse 
had  already  been  given  to  the  movement  outward  by  the  development  of 
electric  trams.  With  a view  to  housing  persons  displaced  by  sanitary  and 
•other  improvements,  the  Manchester  corporation  had  purchased  a considerable 
estate  in  the  northern  limit,  which  is  well  provided  with  transportation  facili- 
ties. A committee  had  just  begun  the  development  of  this  estate  by  the  con- 
struction of  a main  road  and  were  erecting  on  and  adjoining  this  road  dwellings 
for  artisans  not  of  the  poorest  class,  and  were  taking  other  steps  to  form  a new 
colony.  Powers  were  being  sought  to  enable  the  Manchester  corporation  to 
provide  shops,  schools,  churches  and  other  institutions,  but  a complete  scheme 
had  not  yet  been  framed.  Meantime,  the  Manchester  corporation  were 
endeavoring  to  provide  model  dwellings  of  various  types  which  would  assist 
in  improving  the  future  provision  of  houses  by  private  enterprise.  The  cor- 
poration had  bought  Plackley  estate  of  237  acres  at  £150  ($729.97)  per  acre 
and  were  erecting  eighty  dwellings  on  it  at  moderate  rents;  but  a portion  of 
the  estate  would  not  be  built  on,  being  intended  for  allotments.  In  the 
center  of  Manchester  eight  unsanitary  areas  had  been  dealt  with,  of  which 
three  were  to  be  left  open  spaces,  while  on  the  other  side  provision  had  been 
made  for  2,729  people  in  lieu  of  3,127  displaced.  Apart  from  the  humani- 
tarian aspect  of  the  question,  it  was  good  finance  for  municipalities  to  remove 
as  many  people  as  possible  from  the  centers  of  the  cities  to  a more  wholesome 
atmosphere  and  all-around  better  conditions  of  the  outskirts. 

Mexico. — Street  Railways.  The  transition  from  horse  to  electric  traction 
is  still  in  its  infancy  in  Mexico.  In  the  capital  city  of  the  republic,  it  is 
true,  but  few  horse-car  lines  remain,  but  in  the  larger  towns  of  the  states 
the  old  system  of  animal  traction  still  prevails.  It  is  an  interesting  fact 
that  in  granting  franchises  to  street  railway  companies,  the  public  authorities 
have  very  generally  kept  in  view  the  cost  of  the  service  to  the  public  rather 
than  the  return  to  the  city  treasury.  As  a result  street  railway  fares  in 
Mexico,  especially  in  the  smaller  towns,  are  lower  than  in  any  other  part  of 
the  world.  Thus  in  Guadalajara  (State  of  Jalisco),  which  may  be  regarded 

[531] 


120 


The  Annals  of  the  American  Academy 


as  one  of  the  typical  towns  of  the  second  magnitude  (population  about 
102,000),  the  fares  within  the  city  limits  are  three  cents  Mexican  silver, 
which  is  equivalent  to  about  one  and  one-third  cents  in  American  money. 
The  fares  on  the  suburban  lines  range  from  three  to  ten  cents  Mexican 
silver  (one  and  one-third  to  four  and  one-third  cents  American  money),  in 
the  second-class  cars,  according  to  the  distance  traveled.  In  the  first-class 
cars  on  suburban  lines  the  fares  range  from  five  to  sixteen  cents  Mexican 
silver  (two  and  one-fifth  to  six  and  nine-tenth  cents  American  money).  It 
is  true  that  in  most  cases  long-distance  travel  is  more  expensive  in  Mexico 
than  in  the  United  States,  but  it  must  always  be  kept  in  mind  that  the  bulk 
of  the  traffic  is  on  the  lines  within  the  city  limits. 

The  next  few  years  are  likely  to  witness  marked  changes  in  the  street 
railway  systems  of  the  larger  towns.  Franchises  for  change  of  motive 
power  to  electricity  have  been  granted  very  generally.  The  utilization  of  the 
abundant  water  power  which  exists  in  many  parts  of  the  republic,  for  the 
production  of  electricity,  has  contributed  much  towards  hastening  this  move- 
ment. 

Water  Supply  and  Sanitation  of  Municipalities. — One  of  the  most  strik- 
ing features  of  recent  municipal  development  in  Mexico  is  the  care  and 
attention  that  is  being  given  to  the  improvement  of  the  water  supply  of  the 
larger  cities  of  the  republic.  Where  the  resources  of  the  municipalities  have 
not  been  sufficient  to  meet  the  expense,  the  state  governments  have  stepped 
in  to  aid  in  the  work.  In  two  notable  instances,  Cuernavaca  in  the  State  of 
Morelos,  and  Guadalajara  in  the  State  of  Jalisco,  an  entirely  new  water 
system  has  been  constructed  at  the  expense  of  the  state  and  an  arrangement 
entered  into  with  the  respective  municipalities  to  pay  the  interest  and 
amortization  charges  of  the  debt  thus  incurred. 

Concurrent  with  the  improvement  of  the  water  supply,  and  largely  as  a 
result  of  it,  there  has  been  a marked  betterment  in  the  sanitary  condition 
of  the  towns.  The  cleanliness  of  most  of  the  cities  of  the  republic  is  a 
matter  of  surprise  to  every  traveler.  Within  recent  years  the  sanitary 
inspection  of  dwelling  houses  has  been  thoroughly  organized,  usually  directed 
and  controlled  by  a state  board  of  health,  with  agents  in  every  town  and 
district.  This  board  also  exercises  close  supervision  over  food  products,  a 
matter  of  special  importance  in  a country  where  the  low  rate  of  wages  adds 
to  the  temptation  to  adulteration  of  food  products  in  order  to  bring  prices- 
within  the  range  of  the  consumer. 

Police  System. — It  requires  some  time  for  the  stranger  to  acquaint  him- 
self with  the  intricacies  of  the  police  system  of  Mexico.  In  addition  to  the 
municipal  police  of  the  towns,  there  is  a state  constabulary  which  usually 
does  duty  in  the  country  districts,-  but  may  also  be  called  upon  to  do  service 
in  the  towns  where  the  local  police  is  unable  to  handle  the  situation.  Finally 
there  are  the  federal  troops  distributed  throughout  the  country  in  those 
sections  where  their  presence  is  likely  to  do  most  good. 

The  states  are  divided  into  districts  with  an  executive  head  known  as  the 
jefe  politico  appointed  by  the  governor.  The  jefe  politico  is  responsible  for 
the  good  order  of  the  district  placed  under  his  authority.  He  has  charge 

[532] 


M nnici pal  G overn men t 


1 21 

of  the  local  police,  may  call  upon  the  state  constabulary,  and  in  case  of 
emergency  may  apply  to  the  commander  of  the  federal  troops  for  aid. 

The  excellent  order  that  now  prevails  throughout  most  of  the  states  of 
the  Mexican  Republic,  the  very  general  respect  for  life  and  property,  are  due, 
in  the  main,  to  the  control  of  the  state  governments  over  the  police  system. 
To  have  handed  over  to  the  town  authorities  the  management  of  the  police 
force  would  have  resulted  in  personal  and  class  discriminations  and  would 
have  given  rise  to  local  conflicts.  At  present  the  management  of  the  local  and 
state  police  force  is  conducted  with  exclusive  view  to  the  maintenance  of 
order  and  the  protection  of  property  rights.  That  this  service  is  being  per- 
formed is  attested  by  the  increasing  swiftness  with  which  crime  is  detected 
and  punished. 

Municipal  Administration. — Although  Mexico  is  a federal  republic,  the 
system  of  municipal  government  is  practically  uniform  throughout  the  sev- 
eral states.  In  this  branch  of  the  public  administration,  more  than  in  any 
other,  the  influence  of  the  Spanish  system  is  to  be  found.  In  fact,  the  form 
of  local  government,  as  introduced  by  Cortez,  has  undergone  but  little 
change.  The  Mexican  ayuntamiento  does  not  differ  materially  from  its 
Spanish  prototype.  Every  town,  whether  large  or  small,  has  its  council 
elected  by  what  is  known  as  the  “indirect”  or  “second  degree”  system. 
The  voters  choose  electors  w’ho,  in  turn,  select  the  members  of  the  council. 
As  a matter  of  fact  this  system  of  indirect  election  gives  to  the  state  authori- 
ties considerable  influence  in  determining  who  should  be  selected. 

The  powers  of  the  council  are  mainly  deliberative : the  execution  of  its 
decisions  being  usually  entrusted  to  the  jefe  politico  of  the  municipal  dis- 
trict— a state  officer  appointed  by  the  governor  and  responsible  to  him  alone. 
In  some  states,  such  as  Morelos,  the  jefe  politico  is  ex  officio  president  of 
the  municipal  council,  in  others,  such  as  Jalisco,  he  is  purely  executive  officer. 

It  is  evident  that  with  the  executive  head  of  each  municipality  appointed 
by  the  governor,  the  state  authorities  are  able  to  maintain  control  over  local 
affairs.  This  control  is  further  strengthened  by  the  fact  that  in  all  the  states 
the  budget  of  every  town  must  be  submitted  to  the  central  government  for 
approval  before  becoming  effective,  and  in  a majority  of  the  states,  all 
important  decisions  of  the  municipal  council  relating  to  local  affairs  must 
receive  the  approval  of  the  governor. 

Another  important  factor  tending  to  increase  the  influence  of  the  state 
governments  in  local  affairs,  is  the  small,  in  fact  almost  insignificant,  income 
of  the  towns.  In  the  main,  they  are  dependent  upon  the  proceeds  of  the 
municipal  markets,  slaughter-houses,  license  fees  and  a few  local  excises. 
Whenever,  therefore,  an  important  public  work  is  to  be  undertaken,  the  state 
government  is  usually  appealed  to.  The  water  supply  of  most  of  the  larger 
towns,  outside  the  City  of  Mexico,  has  been  planned  and  constructed  at  the 
expense  of  the  respective  state  governments.  The  debt  thus  incurred  is 
usually  charged  against  the  municipality  and  the  state  reserves  from  the 
proceeds  of  water  rents  a percentage  sufficient  to  pay  the  interest  and 
amortization  charges. 

As  a final  and  culminating  factor  in  the  centralization  of  local  affairs, 

[533] 


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some  of  the  states,  such  as  Jalisco,  have  taken  over  the  entire  public  school 
and  poor  relief  system,  administering  them  directly  through  state  officials,  a 
•director  of  public  instruction  and  a director  of  charities.  The  entire  expense 
for  these  services  is  borne  by  the  state  treasury.  The  adoption  of  this  plan 
was  made  necessary  by  reason  of  the  absence  of  a well-defined  local  senti- 
ment to  support  these  services. 

Thus  the  traditions  of  Spanish  and  French  administrative  centralization 
have  been  developed  in  Mexico  to  their  logical  consequences.  Although  with 
each  change  of  political  system,  there  has  been  some  modification  of  the 
form  of  local  government,  the  policy  of  state  control  over  local  affairs  has 
remained  practically  unchanged.  Local  self-government  is  unknown  in 
Mexico,  and  there  seems  to  be  no  immediate  prospect  of  change  in  the 
direction  of  a more  decentralized  system. 

In  spite  of  the  absence  of  local  control  over  municipal  affairs,  the  Mexican 
towns  are  by  no  means  devoid  of  local  spirit,  but  it  is  social  rather  than 
•civic.  The  town  represents  a center  for  social  intercourse  and  recreation 
rather  than  a corporation  for  the  performance  of  public  services.  As  a matter 
of  fact,  the  main  function  of  the  town  authorities  seems  to  be  to  supply 
public  amusement — such  as  concerts,  theaters,  etc.  In  towns  of  three  and 
four  thousand  inhabitants  the  authorities  will  not  fail  to  supply  a public 
concert  at  least  twice  a week  and  in  some  places  every  evening.  The 
larger  cities  own  at  least  one  theater  and  make  every  effort  to  supply  the 
inhabitants  with  drama,  comedy  and  operetta  at  the  lowest  possible  prices. 

This  policy  has  created  a feeling  of  town  loyalty  which  is  at  first  sur- 
prising, but  is  to  be  explained  by  the  fact  that  municipal  spirit  in  its  nar- 
rower sense  of  attachment  to  the  town  is  aroused  by  the  recreations  and 
amusements  offered  by  the  town  to  a far  greater  degree  than  by  the  efficiency 
•of  the  more  fundamental  services,  such  as  police  system  and  water  supply. 

Municipal  Theaters. — The  authorities  of  the  City  of  Mexico  have  recently 
adopted  a plan  intended  to  secure  to  the  masses  the  presentation  of  standard 
dramas  and  comedies  at  popular  prices.  For  this  purpose  the  municipality 
has  leased  one  of  the  leading  theaters  and  has  advertised  for  sealed  proposals 
from  theatrical  managers.  The  theater  is  to  be  given  rent  free  on  condition 
that  a certain  number  of  plays  be  presented  at  greatly  reduced  prices.  The 
government  has  two  objects  in  view,  first,  to  diminish  the  attraction  of  the 
dram  shops  and,  secondly,  to  counteract  the  influence  of  the  lower  class  of 
variety  theaters.  If  the  experiment  proves  successful  it  is  likely  to  result  in 
a further  extension  of  the  plan  so  as  to  include  a municipal  theater,  which 
shall  have  as  its  main  purpose  the  furnishing  of  elevating  amusements  to  the 
people. 


Philanthropy , Charities  and  Social  Problems 


123 


II.  DEPARTMENT  OF  PHILANTHROPY,  CHARITIES  AND 
SOCIAL  PROBLEMS 

The  New  Jersey  State  Board  of  Children’s  Guardians. — In  the  year 
1897,  the  governor  of  New  Jersey  appointed  a commission  to  investigate  the 
condition  of  defective,  delinquent  and  dependent  children  in  the  state.  This 
commission  worked  for  two  years  on  the  problem.  After  making  an  investiga- 
tion and  reporting  the  result  to  the  legislature,  the  commission  looked  about 
to  find  a remedy  for  the  existing  evils.  Visits  were  made  to  leading  child- 
helping societies  all  over  the  country  and  the  different  state  systems  for 
caring  for  dependent  children  were  studied.  The  placing-out  system  seemed 
to  give  the  best  results. 

The  commission  recommended  establishing  a State  Board  of  Children’s 
Guardians,  which  should  adopt  the  placing-out  system  of  caring  for  its  wards 
and  on  March  24,  1899,  the  legislature  passed  a bill  authorizing  the  appoint- 
ment of  such  a board.  The  board  is  composed  of  seven  members,  two  of 
whom  are  Roman  Catholic  and  two  of  whom  are  women.  Members  hold 
office  for  six  years — two  members  being  appointed  at  the  end  of  every  two 
years.  It  will  be  seen  that  no  governor  can  appoint  more  than  two  members, 
except  in  cases  of  death  or  resignation.  They  receive  no  compensation  for 
their  services.  The  board  becomes  the  legal  guardian  of  every  child  that  is 
made  a public  charge,  such  guardianship  superseding  any  rights  of  the  parents 
so  far  as  its  custody  is  concerned. 

A thorough  investigation  of  the  circumstances  of  commitment  is  made 
in  each  case.  If  no  worthy  parent  or  relative  can  be  found  the  child  is  placed 
in  an  approved  family  of  the  same  religious  faith  as  its  parents,  as  required 
by  law.  The  law  also  stipulates  that  each  child  shall  be  visited  quarterly. 
All  children  placed  out  are  obliged  to  attend  school  according  to  the  laws 
of  the  state.  To  be  sure  that  they  do,  monthly  reports  are  received  from 
school  teachers,  showing  attendance,  standing  in  studies,  the  condition  of 
clothes  and  physicial  condition.  Quarterly  reports  of  attendance  are  also 
received  from  the  pastor  or  priest,  in  regard  to  the  children’s  religious 
instruction. 

A great  many  defective,  crippled  and  sickly  children  come  into  the  custody 
of  the  board.  Those  physically  disabled  are  placed  in  the  care  of  a physician, 
from  whom  they  receive  the  necessary  treatment.  The  mentally  defective 
children  are  placed  in  the  proper  state  institutions. 

Children  are  placed  in  families  either  at  board,  free  of  charge,  or  for 
adoption.  The  price  paid  for  board  is  $1.50  per  week  and,  in  addition  to  this, 
clothing  and  medical  attendance  are  provided.  Families  that  take  children 
free  are  required  to  board,  furnish  clothing  and  medical  attendance.  Children 
for  adoption  are  placed  on  trial  for  at  least  six  months,  after  which  time,  if 
everything  is  satisfactory  to  both  parties,  the  board  gives  its  consent  to  the 
adoption,  which  can  be  secured  through  the  Orphans’  Court.  The  board  has 

[53s] 


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The  Annals  of  the  American  Academy 


the  right  at  any  time  to  surrender  a child  to  parents,  if  this  will  he  for  the 
best  interest  of  the  child. 

Each  year  the  legislature  appropriates  a sum  of  money  for  the  administra- 
tion of  the  work.  This  amount  is  used  for  salaries  of  agents,  office  expenses 
and  travel  in  placing,  supervising  and  transferring  children.  The  expense  of 
board,  clothing  and  medical  attendance  for  children  placed  out  is  borne  by 
the  community  from  which  the  child  was  committed. 

Up  to  October  i,  1903,  1,517  children  have  come  into  the  care  of  the 
board.  Of  this  number,  305  are  in  boarding  homes,  205  in  free  homes  and  the 
remainder,  with  the  exception  of  twenty  in  almshouses,  have  been  dis- 
charged from  custody  to  parents  or  relatives. 

The  placing-out  scheme  has  worked  admirably  and  the  benefits  of  a 
family  life  over  the  artificial  life  of  an  institution  are  marked.  The  natural 
family  life  prepares  the  child  to  take  his  place  in  the  world  and  compete  with 
others  who  have  had  normal  home  training.1 

Report  of  Children’s  Institutions  Department,  Boston. — An  interesting 
and  instructive  report  has  been  issued  by  the  Children’s  Institutions  Depart- 
ment of  the  City  of  Boston  for  1902-03.  The  delinquent  and  dependent 
children  becoming  public  charges  in  Boston  are  provided  for  in  one  of  three 
ways.  Wayward  boys  committed  through  the  courts  are  sent  to  the  House 
of  Reformation,  maintained  by  the  city  on  Rainsford  Island.  Here  the 
youthful  offenders  are  given  schooling,  taught  some  useful  trade  and  brought 
under  wholesome  moral  influences.  To  the  Truant  School  are  sent  those 
children  who  have  become  so  unmanageable  to  parents  and  teachers  that  it 
is  impossible  to  keep  them  in  school.  This  institution,  on  the  cottage  plan, 
aims  to  combine,  with  its  educational  advantage,  a good  home  training  and 
discipline,  which  most  of  the  children  sadly  need.  The  third  class  dealt  with 
are  the  dependent  and  neglected,  and  for  these  has  been  developed  a careful 
placing-out  system.  The  children  are  watchfully  supervised  in  families,  both 
by  regular  agents  from  the  city  office  and  by  volunteer  visitors,  who' 
make  sure  that  the  children  are  attending  school  and  church  and  being 
kindly  treated.  Those  at  board  are  visited  every  six  weeks  and  those  in  free 
homes  every  three  months.  Infants  and  delicate  children  are  visited  monthly 
by  a trained  nurse.  Mentally  defective  children  are  placed  in  the  State 
Institution  for  Feeble  Minded.  At  the  close  of  the  year  there  were  391 
children  in  boarding  homes  and  308  indentured  in  free  homes.  The  city  is 
able  to  find  country  homes  for  crippled  and  deformed  children  by  paying 
higher  board,  and  the  effect  of  healthful  surroundings  is  so  excellent  that 
many  in  time  become  self-supporting.  In  glancing  at  the  report,  one  is 
impressed  by  the  care  taken  to  ascertain  in  each  case  the  physical  condition 
of  the  child  and  to  provide  for  its  necessities.  When  boys  from  the  House 
of  Reformation  leave  that  institution,  they  are  put  upon  probation  for  a 
time,  either  in  their  own  homes  or  at  work.  Of  all  those  thus  on  probation 
at  the  end  of  the  year,  over  54  per  cent  were  doing  well  and  over  24  per 
cent  were  doing  fairly.  A number  of  boys  and  girls,  former  wards  of  the 

1 Contributed  by  Seymour  H.  Stone,  Superintendent. 

[536] 


Philanthropy , Charities  and  Social  Problems 


125 


-city,  have  homes  of  their  own  and  are  filling  positions  of  trust  and  responsi- 
bility. Several  are  graduates  of  colleges  and  academies. 

Prevention  of  Cruelty  to  Children. — A pamphlet  entitled  “Wie  schiitzen 
wir  die  Kinder  von  Mishandlung  und  Verbrechen,”  and  published  in  Vienna, 
contains  an  interesting  account  of  the  agitation  to  establish  an  Austrian 
Society  for  the  Prevention  of  Cruelty  to  Children.  The  author  is  Fraulein 
Lydia  von  Wolfring,  who,  through  her  reading  and  observation,  became 
aroused  to  the  widespread  suffering  of  children  from  abusive  and  vicious 
parents,  and  to  the  lack  of  knowledge  of  the  prevalence  of  this  evil  on  the 
part  of  the  general  public.  Miss  von  Wolfring  traveled  for  a number 
of  months  in  Italy,  Switzerland,  France  and  Austria,  investigating  court 
statistics  as  well  as  many  individual  cases  of  cruelty  to  children.  As  a result 
of  her  travels  she  became  convinced  that  vigorous  effort  should  everywhere 
be  made  to  search  out  cases  of  cruelty,  arrest  and  punish  the  parents  and 
rescue  the  children.  She  admits  there  are  many  difficulties  in  the  way,  such 
as  the  strong  instinctive  feeling  on  the  part  of  the  public  that  parents  have 
inalienable  rights  to  their  children,  and  the  difficulty  of  presenting  absolute 
evidence  in  court.  She  says,  however,  in  no  uncertain  language,  that  where 
parents  are  degenerate,  “modern  society  may,  nay  must,  step  between  them 
and  their  victim.”  She  points  out  that  not  to  protect  a child  from  the  abuse 
of  parents  and  the  evils  of  a bad  home,  is  only  later  to  have  an  additional 
criminal  to  provide  for.  She  draws  plans  for  an  organization  for  the  pre- 
vention of  cruelty,  which  shall  have  headquarters  in  Vienna  with  branches 
all  over  Austria.  Each  branch  shall  have  a corps  of  workers  composed  of 
well-known  reliable  citizens,  both  men  and  women,  who  are  to  search  out 
all  cases  of  cruelty  and  report  them  to  the  central  executive  committee  at 
Vienna.  Miss  von  Wolfring  speaks  of  the  good  work  being  done  in  other 
countries ; notably  that  by  the  National  Society  for  the  Prevention  of  Cruelty 
to  Children  in  England.  During  fourteen  years  this  society  has  handled  281,- 
000  children.  Of  these,  198,101  were  neglected,  45,756  were  brutally  injured 
and  8,557  were  victims  of  criminal  assault.  In  1,423  cases  death  resulted.  In 
the  year  1899  this  society  rescued  68,000  children,  but  in  204  cases  rescue 
came  too  late.  The  greatest  work  of  the  English  society  is,  perhaps,  the 
change  it  has  brought  about  in  the  status  of  the  child  before  the  law.  The 
public  has  acquired  an  increased  sense  of  responsibility  towards  the  neglected 
and  abused  child  and  laws  for  its  protection  have  been  established  and 
enforced.  Miss  von  Wolfring  points  out  that  drunkenness  is  a great  factor 
in  cruelty  to  children — as  is  also  infant  insurance.  The  English  society 
handled  in  five  years  19.000  children,  whose  death  would  have  brought  the 
parents  95,000  pounds  sterling.  She  speaks  of  the  good  work  done  by  the 
New  York  society,  and  closes  with  the  outline  of  a plan  for  establishing  an 
agricultural  colony  on  the  cottage  or  family  system,  for  such  children  as 
must  be  taken  from  parents,  and  advocates  as  near  an  approach  to  family 
life  as  possible. 

At  a meeting  of  the  Rhode  Island  Society  for  the  Prevention  of  Cruelty 
to  Children,  Hon.  Elbridge  T.  Gerry  said  in  substance:  The  object  of  this 
society  is  the  rescue  of  the  child,  not  its  reformation.  The  child  is  the  client. 

[537] 


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The  speaker  told  of  the  origin  of  the  parent  society,  in  the  United  States, 
nearly  thirty  years  ago.  The  case  was  that  of  a little  girl  in  New  York  who 
was  beaten  and  maltreated.  Attention  of  Henry  Bergh,  the  philanthropist, 
was  called  to  this,  and  the  woman  who  abused  the  child  was  punished. 
After  this,  complaints  became  so  numerous  that  Mr.  Bergh  was  obliged  ta 
organize  a society  to  take  the  work  in  hand.  The  New  York  Society  for  the 
Prevention  of  Cruelty  to  Children  was  the  first  of  its  kind  in  the  world,  but 
there  are  now  314  societies  in  the  United  States  and  Canada,  either  combining 
with  those  for  the  prevention  of  cruelty  to  animals,  as  humane  societies,  or 
existing  by  their  specific  title. 

The  great  success  of  the  society  and  its  power,  depends  upon  its  cor- 
porate existence.  The  three-fold  cord,  consisting  of  the  legal  right  to  appear 
and  prosecute  and  be  heard,  the  corporate  right  to  apply  the  donations  of  the 
charitable,  and  the  legacies  of  the  dead,  for  that  purpose,  and  the  earnest 
zeal  of  private  individuals  who  give  their  time,  their  talents  and  their  money 
to  carry  out  the  views  of  the  society,  is  not  easily  broken.  The  question 
has  been  asked,  “Why  is  it  that  the  regularly  appointed  officers  of  the  law 
cannot  be  entrusted  with  the  enforcement  of  this,  as  well  as  other  branches 
of  the  criminal  laws?”  The  answer  is  very  simple.  They  are  necessarily  occu- 
pied with  the  protection  of  the  entire  community  and  their  attention  is  given 
very  properly  to  the  duties  of  preserving  the  peace  of  the  public,  and  in  arrest- 
ing and  prosecuting  cases  of  felony. 

Governor  Garvin  stated  that  originally  the  entire  care  and  authority  over 
a child  rested  with  the  parents,  and  perhaps  this  was  better  so.  Even  now 
there  are  some  people  who  believe  that  the  sole  government  should  be  left 
with  parents,  but  the  state  now  interferes  to  protect  children  against  immoral, 
and  physical  abuses. 

The  report  of  the  society  showed  that  it  is  doing  a very  effective  work. 
Children  are  taken  and  cared  for,  and  given  a home  until  they  are  of  quite 
mature  age.  Most  of  them  are  placed,  not  in  institutions,  but  in  private  homes, 
a great  and  undoubted  advantage,  if  these  homes  are  what  they  should  be 
and  of  course  the  officers  of  the  society  know  that  they  are  proper  persons. 
The  work  is  necessary  and  promising.  As  Mr.  Gerry  said : “A  single  child 
saved  makes  the  expenditure  of  money  worth  while.  Knowing  that  the  work 
is  bringing  forth  good,  the  society  should  be  given  the  support  of  the  public 
in  the  execution  of  its  noble  work.” 

Home  Life  versus  Institution  Life  has  been  discussed  very  largely  dur- 
ing the  last  six  months  by  the  daily  papers  of  the  country.  There  is  a general 
desire  for  information  in  regard  to  home  placing.  In  an  article  which  recently 
appeared  in  the  New  York  American  the  following  statements  were  made: 

“A  little  girl,  fourteen  years  old,  set  fire  to  a barn  in  Poughkeepsie,  in 
New  York  State.  She  is  locked  up  as  a criminal.  The  child  had  spent  her 
life  in  an  asylum  for  orphans  until  very  recently,  when  she  was  taken  as  a 

servant  by  Mrs.  . The  child’s  photograph  shows  an  average  good  face. 

She  is  kind-hearted  enough,  as  is  shown  in  the  fact  that  she  drove  all  the 
chickens  out  of  the  barn  before  setting  fire  to  it ; she  said  she  could  not 
bear  to  see  them  burn  up.  She  confessed  willingly  that  she  set  fire  to  the 

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1 27 


barn  because  she  wanted  to  have  the  excitement  of  seeing  the  fire  engines 
come.  This  young  girl  will  now  be  returned  to  her  orphan  asylum.  She 
will  go  back  to  a scheme  of  life  which  is  largely  the  cause  of  her  disordered 
cravings,  to  a kind  of  life  that  ruins  with  its  dull  routine  hundreds  of  thou- 
sands of  children. 

“In  a big  asylum,  no  matter  how  good  the  intentions  of  the  management 
or  how  kind  the  attendants,  the  lives  of  the  unfortunate  children  are  dull 
beyond  belief.  Everything  is  routine,  common-place,  dead-level  monotony. 
They  sleep  all  in  uniform  little  beds  side  by  side,  they  get  up,  go  to  bed,  eat, 
walk — do  everything  in  one  monotonous  routine.  And  worst  of  all,  nothing 
is  left  to  their  own  initiative,  to  their  own  imaginations.  All  that  makes 
up  the  happiness  of  an  ordinary  child  is  unknown  to  these  poor  children  whom 
unworthy  parentage  or  bad  social  conditions  force  into  the  asylums.  They 
do  not  know  the  individual  care  and  affection  of  a mother  and  a father. 
They  lack  the  excitement  that  other  little  girls  find  in  their  dolls,  or  that 
other  little  boys  find  in  dogs  and  rabbits  and  enterprises  of  all  kinds.  Within 
there  is  a craving  for  the  amusements  and  interests  that  ought  to  make  up 
the  life  of  a child.  It  is  no  wonder  that,  occasionally,  when  suddenly  freed 
from  this  horrible  monotony,  poor  asylum  children  go  to  extremes.  Then 
they  are  called  criminals  and  returned  to  their  prison,  whereas  in  reality  the 
real  criminal  is  the  fate  that  condemns  them  to  a dull  prison  life. 

“Abandoned  children  or  others  that  find  their  way  to  the  asylums  are 
looked  upon,  although  unjustly,  as  necessarily  inferior  human  beings.  If  they 
were  inferior  it  would  certainly  be  a sacred  duty,  for  their  sake  and  for  the 
sake  of  others,  to  lift  them  up  as  far  as  possible.  This  can  only  be  done  by 
endeavoring  to  individualize  their  lives,  to  give  them  interests,  industrial  and 
others,  to  bring  them  in  contact  with  the  children  outside  of  the  asylums. 
They  should  not  be  dressed  in  monotonous  uniforms.  They  should  all  be 
sent  to  the  regular  open  public  schools.  In  this  latter  respect  some  of  the 
Jewish  institutions  show  exceptional  intelligence.  They  send  the  children 
from  their  asylums  to  the  regular  public  schools.  It  is  no  wonder  that  these 
children  from  the  Jewish  asylums  outclass  in  success,  subsequently,  the 
children  from  institutions  which  condemn  them  to  dull  inside  routine. 

“If  the  boy  of  the  asylum  could  go  to  the  public  school  each  day,  mixing 
with  other  boys  for  several  hours,  going  through  the  city  street  sharing  the 
general  life  of  the  country,  he  would  certainly  be  better  able  to  compete  with 
the  world  when  released  from  his  charitable  prison.  It  will  probably  be  said 
that  some  of  the  boys  might  run  away.  They  would  not  run  far ; the  world 
is  none  too  ready  to  take  care  of  runaway  asylum  children.  Even  if  a few 
did  escape  from  the  asylum  life,  no  great  harm  would  be  done,  and  much 
good  would  be  done  by  improvement  of  the  others. 

“We  build  now  imposing  asylums  for  children,  great  structures  of  brick 
and  stone,  with  high  stone  walls  all  around  them.  And  many  of  us  look  at 
these  institutions  with  admiration,  imagining  them  to  be  beneficial.  They 
are  beneficial  in  one  way,  as  they  relieve  the  outside  world  of  its  burden  and 
responsibility.  But  every  one  of  them  is  a dismal  prison  house  in  which 
human  souls  are  crushed,  kept  down  and  deprived  of  future  possibilities  by 

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deadly  monotony.  No  wonder  that  the  five  children  of  Jean  Jacques  Rousseau, 
who  ,went  to  the  asylum  for  abandoned  children,  were  never  heard  of  after- 
ward. Rousseau  himself  would  never  have  been  heard  of  had  his,  youth  been 
passed  in  such  an  asylum,  instead  of  being  passed  in  conversation  with  his 
father  and  in  the  free  study  of  the  world,  although  often  under  the  most 
hideous  circumstances.” 

Separate  Courts  for  Juvenile  and  Probation  Officers  in  Rhode  Island. — The 

State  of  Rhode  Island,  in  1898,  enacted  a law  requiring  its  criminal  courts  to 
hold  separate  sessions  for  the  trial  of  juvenile  offenders.  This  act  pro- 
hibited the  confinement  of  any  child  under  thirteen  years  of  age  in  any 
police  station  with  adult  offenders,  or  the  commitment  of  any  such  child 
to  prison  for  any  offence  not  punishable  by  death  or  imprisonment  for  life. 
It  was  ordered,  that  at  every  trial  of  a child  upon  a criminal  charge,  there 
should  be  present  an  agent  either  of  the  Board  of  State  Charities  and  Cor- 
rection, or  of  the  Society  for  the  Prevention  of  Cruelty  to  Children,  or  of 
the  St.  Vincent  de  Paul  Society;  and  the  court  might  commit  a child  under 
thirteen  to  the  custody  of  either  of  these  three. 

In  1899,  another  step  was  taken,  in  the  passage  of  an  act  empowering 
the  Board  of  Charities  and  Correction  to  appoint  probation  officers  (of  whom 
one  must  be  a woman),  removable  at  will,  and  authorizing  the  courts  to  place 
both  juvenile  and  adult  offenders  under  the  control  of  these  officers.  A pro- 
viso was  attached  toi  the  act,  that  no  compensation,  except  for  expenses,  should 
be  paid  to  any  official  of  the  state,  or  of  any  society,  in  receipt  of  a salary. 
The  state  board  has  power  to  discharge  inmates  of  the  State  Reform  School, 
on  probation,  to  live  at  home  or  in  families. 

Massachusetts  Child  Labor  Law. — As  the  result  of  twenty-five  years 
of  effort  in  Massachusetts,  a stringent  law  has  been  passed  thoroughly 
enforcing  and  practically  eliminating  child  labor  for  wages  in  the  state. 
In  the  early  history  of  this  class  of  legislation  the  objection  and  obstruction 
came  chiefly  from  parents,  who  were  more  eager  to  increase  the  family  income 
by  a few  dollars  than  to  safeguard  their  children.  Twenty  years  ago  cases, 
were  known  of  children  eight  years  old  working  sixty-six  hours  a week  in 
factories.  Such  a condition  could  not  now  be  found  in  the  state.  Wise 
legislation  has  been  enacted  substantially  increasing  the  age  limit,  so  that 
no  child  under  fourteen  shall  be  employed  in  any  factory.  The  great  textile 
and  other  industries  are  conducted  with  marked  respect  for  the  law,  and  “not 
only  are  the  state  inspectors  of  factories  given  the  duty  of  seeing  that  its 
provisions  are  enforced,  but  the  local  school  officers  must  also  see  that  the 
provisions  of  the  statute  as  to  compulsory  education  are  enforced  as  well. 
The  two  statutes  and  two  sets  of  officers  supplement  one  another.” 

Commission  to  Report  on  a State  Reformatory  in  Connecticut. — The 
commission  appointed  by  Governor  Chamberlain,  of  Connecticut,  whose  duty 
it  will  be  to  investigate  the  needs  for  the  establishment  of  a state  reforma- 
tory, is  meeting  with  unqualified  praise  from  the  principal  papers  in  Con- 
necticut. The  chairman  of  the  commission  is  Warden  Garvin  of  the  State 
Prison.  The  other  members  are  Thomas  D.  Wells,  of  Hartford,  editor  of 
the  Hartford  Post,  and  for  some  years  a member  of  the  Prison  Board  of 

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129 


Directors;  Senator  Cornelius  Tracy,  who  is  largely  responsible  for  the  act, 
which  created  the  commission;  Dr.  William  Ford,  a member  of  the  House 
of  Representatives  and  editor  of  the  New  Haven  Register. 

The  commission  was  appointed  under  a very  liberal  act,  by  which  they 
are  directed  to  examine  all  laws,  conditions  and  customs  pertaining  to  com- 
mitments to  jails  and  the  prisons  of  the  state  and  to  recommend  such  changes 
as  are  necessary  to  aid  in  the  making  of  a reformatory.  The  commission  is 
directed  to  select  a site  for  the  reformatory  and  to  prepare  plans  and  specifi- 
cations. They  are  given  latitude  in  regard  to  the  study  of  the  general  ques- 
tion. The  sum  of  fifty  thousand  dollars  is  put  at  their  disposal. 

The  New  Penitentiary  Near  Paris. — At  Fresnes,  about  eight  miles 
from  Paris  (France),  a new  penitentiary  has  been  opened,  the  largest  in  the 
world,  accommodating  two  thousand  inmates.  The  buildings  with  the  gar- 
dens cover  half  a square  mile,  the  situation  is  beautiful  and  healthy.  The 
houses  have  large  windows,  and  plenty  of  them,  admitting  plenty  of  fresh  air 
and  sunshine.  A large  number  of  shower  baths  are  scattered  throughout  the 
buildings ; the  prisoners’  food  is  abundant.  They  go  to  school  and  are  allowed 
to  work  at  their  trades,  and  with  the  money  earned  to  purchase  any  luxury 
they  may  select  but  tobacco.  In  fact,  everything  possible  is  done  to  develop 
the  better  side  of  their  natures.  The  prisoners  are  kept  separate,  holding  no 
communication  with  each  other,  so  that  they  cannot  recognize  each  other 
when  released. 

The  Annual  Meeting  of  the  Connecticut  State  Prison  Association  elected 
Hon.  Francis  Wayland  president  for  the  twenty-seventh  time.  Among  the 
names  of  the  officers  are  Professor  Henry  W.  Farnam,  Elijah  J.  Steele, 
General  Edward  Harland  and  others.  Their  report  shows  318  prisoners 
assisted  by  the  association,  in  addition  to  this  thirty-one  from  the  jails  were 
aided.  The  prisoners  were  given  clothing  and  transportation  to  their  homes, 
or  to  places  where  they  could  be  employed,  tools  to  enable  them  to  work  at 
their  trades,  and  many  were  furnished  board  while  employment  was  being 
secured  for  them.  Great  emphasis  was  laid  by  Secretary  Taylor,  in  his 
report,  upon  the  need  of  adapting  the  present  system  of  sentencing  to  conform 
with  the  Indeterminate  Sentence  Law.  As  it  is  now,  many  prisoners  come 
into  prison  with  sentences  so  arranged  that  it  is  impossible  to  apply  the 
principles  of  indeterminate  sentence.  In  the  case  of  a sentence  of  not  less 
than  ten  nor  more  than  twelve  years  under  the  operation  of  the  Commutation 
Law  the  prisoner  by  good  conduct  earns  930  days  and  receives  his  discharge 
without  parole  before  the  minimum  part  of  his  sentence  is  reached.  In  cases 
of  this  kind  it  is  not  possible  to  apply  the  parole  test.  The  same  holds  in 
sentences  of  not  less  than  one  year. 

The  probation  system  of  the  state  is  under  the  direction  of  the  associa- 
tion, and  up  to  September  30  they  had  appointed  thirty-seven  probation 
officers,  two  of  them  women.  These  officers  have  had,  as  yet,  only  two 
months’  experience  in  the  service.  A probation  committee  from  the  associa- 
tion was  appointed,  to  whom  all  questions  concerning  the  probation  service  is 
to  be  referred. 

The  Whipping-Post  in  Delaware. — Two  white  and  twelve  black  prisoners 

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were  publicly  whipped  in  the  yard  of  the  county  workhouse  of  Wilmington 
on  September  26,  after  which  they  were  compelled  to  stand  for  an  hour  in 
the  pillory,  and  were  then  “taken  back  to  the  workhouse  to  serve  ten  sentences 
of  six  years  each.”  One  wonders  what  the  subsequent  process  of  reformation 
in  the  workhouse  will  be,  and  whether  the  authorities  have  any  theory  of 
punishment  or  of  reformation?  What  are  the  results  of  their  strenuous 
method  of  correction?  Does  it,  in  fact,  act  as  a deterrent?  Is  crime  less 
prevalent  in  Delaware  than  in  other  states  which  have  outgrown  the  whipping- 
post era  of  progressiveness?  Is  recidivism  less  frequent  in  Delaware  than 
elsewhere?  Are  crimes  of  violence  fewer  proportionately  than  in  other  states? 
Or  is  there  anything  peculiar  to  the  citizens  of  Delaware  which  necessitates 
this  survival  of  mediaeval  methods  of  punishment?  The  questions  raised  above 
are  thoroughly  practical  and  they  interest  all  who  are  concerned  in  the  treat- 
ment of  criminals. 

“Jewish  Charity.” — In  October  appeared  the  first  number  of  Jewish 
Charity,  a monthly  review  published  by  the  United  Hebrew  Charities  of  New 
York  City,  of  which  Dr.  Lee  K.  Frankel  is  one  of  the  editors.  In  an  interest- 
ing opening  article  the  editors  point  out  the  need  of  hearty  co-operation 
among  philanthropic  Jews,  which  it  is  hoped  the  new  publication  will  stimu- 
late. Jewish  charitable  effort  has  its  own  field  distinct  from  other  philan- 
thropic enterprises;  first,  because  the  needy  Jew  turns  more  readily  to  his 
brethren  in  faith,  and,  second,  because  the  Jews  of  the  upper  classes  have- 
tacitly  determined  not  to  permit  their  poor  to  become  objects  of  state  charity. 
But,  despite  the  fact  that  the  Jews  constitute  one-fifth  of  the  population  of 
Greater  New  York,  hitherto  “all  theoretic  discussion  of  Jewish  pauperism 
from  anything  like  a scientific  standpoint  has  emanated  from  persons  not  of 
the  Jewish  race.”  It  is  the  editors’  hope  that  with  the  publication  of  Jewish 
Charity  the  Jews  themselves  will  be  influenced  to  give  a closer  attention  to 
the  sociological  conditions  of  their  poor.  It  is  the  purpose  of  the  new 
review  to  keep  track  of  publications  on  Jewish  charitable  topics  and  of  new 
men  in  Jewish  charitable  institutions  and  to  record  the  work  and  progress 
of  the  United  Hebrew  Charities.  This  number  contains  also  an  article  by 
Dr.  Frankel  on  “Co-operation  on  the  East  Side,”  giving  the  outline  of  a 
proposed  plan  by  which  there  shall  be  a number  of  district  committees  on 
the  East  Side,  composed  of  intelligent  residents  of  that  section,  to  assist  the 
officers  of  the  United  Hebrew  Charities  to  care  for  the  poor.  Maurice  Fish- 
berg  has  an  article  on  consumption,  the  increase  of  which,  among  Jews,  he 
attributes  to  overcrowding  in  tenements  and  sweatshops.  Attention  is  called 
in  this  number  to  the  new  Winter  School  of  Philanthropy  in  New  York,  and 
an  outline  of  the  proposed  course  is  given.  All  interested  in  philanthropic 
work  and  in  the  intelligent  discussion  of  its  results  and  its  needs  will  welcome 
Jewish  Charity  and  wish  it  success. 

Graft. — Several  very  interesting  articles  have  appeared  in  various  maga- 
zines of  late  exposing  corruption  in  the  administration  of  the  municipal 
affairs  of  certain  American  cities.  None  of  them  have  attempted  to  show 
the  historical  origin  of  this  corruption.  A treatise  on  the  history  of  graft 
would  form  a valuable  addition  to  current  sociological  literature,  but  it 

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Philanthropy , Charities  and  Social  Problems  131 

would  be  a task  of  enormous  difficulty  to  gather  and  arrange  the  materials 
for  it. 

Political  influence  is  the  result  of  the  possession  of  power  to  influence 
political  action.  In  a democracy,  it  is  conditioned  upon  the  ability  to  deliver 
votes  at  a popular  election.  Its  extent  is  measured  by  the  number  of  votes 
controlled,  whether  in  a state,  county,  city,  ward  or  precinct;  just  as  finan- 
cial power  depends  upon  pecuniary  resources  and  credit. 

Many  considerations  affect  the  voter:  his  principles,  prejudices,  senti- 
ments ; and  above  all,  his  interests.  The  average  man  votes  for  the  measures 
and  the  men  whose  victory  will,  he  thinks,  add  to  his  worldly  wealth,  or 
insure  him  official  position  of  some  sort.  No  man  knows  the  truth  of  this 
observation  so  well  as  the  trained  politician,  with  the  possible  exception  of 
the  professional  corruptionist.  Between  these  two  there  is  apt  to  be  a mutual 
understanding,  if  not  a formal  alliance. 

There  are,  therefore,  two  principal  methods  of  influencing  elections : the 
purchase  of  votes,  by  the  direct  use  of  money,  and  the  holding  out  to  the 
voter  the  hope  of  office,  in  the  event  of  political  success.  The  governor  of 
one  of  the  largest  and  most  powerful  states  in  the  Union  once  said  to  the 
writer,  in  all  candor  and  sincerity,  that,  from  his  point  of  view,  the  practical 
objection  to  civil  service  reform  is  that  it  deprives  the  party  of  one  of  these 
resources,  and  that  its  tendency,  therefore,  is  to  place  practical  politics  on  the 
lower  level  of  actual  bribery. 

In  the  conduct  of  a political  campaign,  money  is  a necessity,  for  legitimate 
uses,  in  order  to  pay  the  cost  of  printing  and  of  public  meetings,  and  of 
making  preliminary  canvasses  and  “getting  out  the  vote.”  But  a large  portion 
of  the  funds  raised  ostensibly  for  these  purposes  is  in  fact  paid  to  voters. 
Where  such  funds  are  swelled  by  means  of  a resort  to  political  assessments 
upon  office  holders  and  upon  candidates  for  office,  which  is  an  almost  universal 
practice,  those  who  are  held  up  and  blackmailed  naturally  expect  to  get  their 
money  back,  by  hook  or  by  crook,  and  they  very  often  do  so.  They  repay 
themselves  for  their  outlay,  if  they  have  an  opportunity,  with  interest  far 
in  excess  of  the  legal  rates. 

Men  who  are  not  themselves  dishonest  wink  at  these  practices,  because 
their  consciences  have  become  blunted  by  familiarity  with  them,  and  because 
opposition  to  them  involves  risk  without  the  hope  of  corresponding  and  com- 
pensatory personal  advantage.  When  an  election  cannot  be  carried  by  the 
aid  of  promises  and  of  cash,  there  remain  the  two  resources  of  fraudulent 
voting  and  falsifying  the  returns,  thus  defeating  the  popular  will,  which  is 
virtual  treason,  one  of  the  highest  of  crimes. 

So  much  for  corruption  in  elections.  What  of  legislative  corruption,  and 
corrupt  executive  administration  ? 

Let  us  first  speak  of  the  latter,  because  it  is  purely  official,  and  begin 
with  the  question  of  appointments  to  subordinate  executive  positions. 

Nothing  can  be  clearer  than  that  the  carrying  out  of  corrupt  bargains  is 
itself  corruption.  The  downfall  of  the  Roman  Empire  is  traceable  to  the 
sale  of  offices.  Yet  political  patronage,  even  in  free  America,  is  regarded  as 
a personal  asset,  a perquisite.  Senators  and  Representatives  in  Congress 

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boldly  say  to  the  President,  “This  appointment  belongs  to  me” ; and  against 
the  names  of  the  employees  in  the  departments  at  Washington  entered  on 
the  secret  official  registers  are  placed  the  names  of  those  at  whose  request 
they  have  been  appointed.  A Senator  went,  one  day,  to  a former  member 
of  the  Cabinet  and  said,  “Mr.  Secretary,  I want  Blank  appointed  to  a position 
in  this  department.”  “But,  Mr.  Senator,  there  are  no  vacancies.”  “Make  one, 
then  !”  The  secretary  touched  a bell,  called  a messenger,  and  sent  for  the 
appointment  book,  which  he  handed  to  his  unwelcome  visitor,  with  the  remark, 
“Choose  the  man  to  be  discharged ;”  which  the  Senator  refused  to  do,  and 
went  away  disgruntled.  He  wanted  the  secretary  to  pluck  his  chestnuts 
from  the  fire,  not  to  involve  himself  in  a row  with  a colleague.  If  political 
recommendations  for  appointment  were  of  qualified  persons  only,  the  evil 
would  not  be  so  great;  but  qualification  for  the  discharge  of  their  duties  is 
too  often  a minor  consideration.  Competitive  examinations,  intended  to 
operate  as  a bar  to  improper  appointments,  are  after  all  an  ineffectual  check 
upon  the  practice  here  complained  of. 

This  practice  pervades  all  branches  of  our  complex  political  system.  It 
prevails  in  states,  counties  and  municipalities.  The  appointees  acknowledge 
and  recognize  a divided  dependence,  a double  obligation ; to  the  power  behind 
the  appointing  power  first,  and  after  that  to  the  duties  devolving  upon  them 
by  law.  Discipline  is  rendered  difficult,  and  tends  to  become  lax.  The  public 
does  not  get  value  received  for  the  salaries  paid.  It  cannot  be  otherwise. 

The  root  of  the  maladministration  of  so  many  of  our  public  charitable 
and  correctional  institutions  is  here  laid  bare.  The  well-being  of  the  inmates 
is  sacrificed  to  the  greed  of  place-hunters  and  the  corrupt  facility  of  those 
who  have  places  to  give. 

As  to  legislative  corruption,  it  is  hard  to  estimate  its  amount,  because  it  ' 
is  not  easy  to  unearth  it.  One  thing  is  clear ; there  would  be  no  bribe-takers, 
if  there  were  no  bribe-givers.  The  latter  are  equally  guilty  with  the  former, 
no  matter  what  anodyne  they  may  administer  to  their  consciences. 

City  councils  and  county  boards  are  legislative  kindergartens — training- 
schools  for  the  general  assembly ; and  state  legislatures  are  a primary  class 
for  Congress.  The  lessons  learned  in  them  affect  the  pupifs  entire  subsequent 
career. 

The  corrupt  (or  at  least  the  corrupted)  members  of  a legislative  body 
usually  constitute  a small  minority,  but  they  may  hold  the  balance  of  power. 
The  larger  the  area  (measured  in  population  or  in  square  miles)  represented 
in  this  body,  the  less  of  corruption ; this  is  the  rule,  with  occasional  exceptions. 

Much  unmerited  obloquy  has  been  heaped  upon  the  heads  of  legislators, 
because  of  the  combinations  by  which  so  many  important  measures  are  passed. 
Compromise  and  concession  are  essential  in  all  associated  human  activity. 
Combinations  are  not  corrupt,  unless  they  spring  from  corrupt  motives  or 
have  a corrupt  purpose. 

One  fertile  source  of  legislative  corruption,  especially  in  our  city  and 
county  governments,  is  the  exercise  of  the  powers  of  appointment  and 
administration  by  them.  A legislative  body  should,  in  theory  at  least,  have 


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133 


no  patronage  at  its  command.  If  this  were  the  universal  practice,  the  county 
and  municipal  institutions  of  most  states  would  be  better  than  they  are. 

Finally,  no  survey  of  the  actual  situation  is  complete  which  does  not 
take  account  of  the  fact  that  politicians  and  public  functionaries,  in  favoring 
graft,  reflect  the  will  of  their  constituents.  Two  classes  of  citizens  are  bene- 
fited, as  they  imagine,  by  dishonesty  in  the  administration  of  government ; 
first,  the  petty  thieves ; and,  second,  business  men  with  schemes  for  whose 
successful  execution  political  action  is  essential,  as,  for  instance,  in  the  form 
of  charters  granted,  or  special  privileges  of  some  description,  for  which  they 
are  willing  to  pay.  To  these  must  be  added  such  as  believe  that  the  tolera- 
tion of  open  and  flagrant  immorality  attracts  rural  customers,  and  so  adds 
to  the  wealth  of  the  community.  In  a city  notoriously  corrupt,  a gentleman 
who  had  exceptional  opportunities  for  knowing  what  goes  on  beneath  the 
surface  of  public  affairs,  being  himself  employed  as  counsel  for  a department 
of  the  government,  once  said  to  me,  that  if  the  people  of  that  municipality 
were  given,  for  a single  term,  a government  absolutely  honest  in  all  its 
dealings  with  individuals  and  with  the  public,  they  would  bury  it,  at  the  next 
election,  beyond  the  hope  of  resurrection.2 

The  National  Humane  Association. — When  the  American  Humane  Asso- 
ciation holds  its  annual  meeting  early  in  November,  a carefully  prepared 
plan  to  convert  it  into  a huge  national  organization  will  be  presented  and 
probably  adopted.  This  association  has  existed  for  many  years  as  an 
annual  convention  of  societies  for  the  prevention  of  cruelty — and  nothing 
more.  Their  delegates  attended  to  exchange  views,  ask  questions  and  receive 
information  about  their  common  work.  No  meeting  except  this  annual  one 
was  ever  held.  During  the  recess  a feeble  attempt  was  occasionally  made 
by  its  officers  and  committees  to  print  and  disseminate  humane  literature, 
but  never  with  any  marked  success ; first,  for  lack  of  funds,  as  people  generally 
prefer  to  sustain  the  direct  legitimate  work  of  prevention  as  conducted 
efficiently  by  our  societies  in  their  respective  states ; and,  second,  because 
the  newspaper  and  magazine  literature  is  all  that  is  required  at  the  present 
time  for  the  purpose.  Last  year  some  of  those  very  active  in  the  association 
prepared  and  urged  an  incorporation,  of  the  association  as  a national  body,  with 
practically  the  same  features  as  the  one  now  to  be  adopted.  (1)  The  name 
is  to  be  changed  to  “The  National  Humane  Association.”  (2)  Individuals 
and  not  societies  are  to  be  the  corporators.  (3)  The  incorporation  is  to  be 
in  the  District  of  Columbia.  (4)  Its  work  and  purposes  are  those  of  our 
present  existing  societies.  (5)  Which  it  is  to  stimulate  and  urge  in  enforcing 
laws  and  orders.  (6)  It  is  to'  aid  in  securing  legislation.  (7)  It  is  to  dissemi- 
nate literature  and  in  “extension  of  humane  ideas”  is  to  distribute  and  give 
away  “humane  pictures,  lanterns,  slides,  medals,  and  other  things” ! (8)  The 

bill  then  authorizes  the  creation  of  a board  of  trustees  to  receive  and  hold 
property  including  legacies,  with  limited  personal  liability.  Lastly  (9)  the 
bill  authorizes  the  appointment  of  agents  to  enforce  the  laws  governing  the 
transportation  of  animals,  a work  peculiarly  within  the  province  of  our 
state  societies  for  the  prevention  of  cruelty  to  animals. 

2 Contributed  by  Frederick  Howard  Wines. 

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If  this  bill  should  become  a law,  over  a million  dollars  would  be  needed  to 
make  the  plan  in  the  slightest  degree  effective.  Where  is  the  money  to  come 
from?  The  usual  answer  in  the  organization  of  a trust  is  made, — “it  will 
come  in  due  time.”  How  far  a credulous  man  might  be  willing  to  donate 
liberally  to  such  a corporation  for  such  purposes  remains  to  be  seen.  One 
thing  is  certain,  the  treasuries  of  our  own  societies  stand  a fair  chance  of 
suffering  from  legacies  diverted  from  them  to  this  huge  anti-cruelty  trust 

Now  as  to  the  bill,  generally.  Its  object  is  to  create  a grand  national  cor- 
poration for  the  prevention  of  cruelty  to  animals  and  children  in  humble 
imitation  of  a national  society  for  the  prevention  of  cruelty  to  children  in 
England,  which,  under  a different  form  of  government,  stands  on  a very 
different  footing.  The  limited  territory  of  England  compared  with  that  of 
our  country  renders  such  a corporation  feasible  under  the  English  law. 
Here  the  work  in  one  state  alone  exceeds  that  in  England  in  a year.  True, 
the  liberality  of  the  English  people  in  the  cause  of  humanity  is  alike  large 
and  certainly  most  commendable;  but  they  have  only  one  society  to  support, 
which  derives  no  revenue  from  the  Crown  and  legacies  to  it  do  not  detract 
from  any  other  humane  work.  But  the  corporate  object  of  this  “Trust”  is 
really  to  interfere  with  the  work  of  our  societies  throughout  the  United  States. 
It  absorbs  the  object  of  their  creation  and  they  are  simply  made  the  exponent 
of  its  ideas.  As  in  similar  trusts,  they  retain  their  corporate  existence, 
but  really  are  directed  and  governed  by  the  trust.  The  measure  is  a very 
dangerous  usurpation  of  the  right  of  individual  states  to  create  corporations 
therein  for  the  enforcement  of  their  own  state  laws.  Congress  has  nothing 
whatever  to  do  with  the  penal  laws  of  any  state  nor  with  their  enforcement. 
The  subject  does  not  properly  belong  to  the  Federal  Government.  The  pro- 
viso in  the  bill  for  meeting  anywhere  in  the  United  States  is  without  a 
precedent.  To  create  such  an  irresponsible  corporation,  with  a mere  agent 
located  at  Washington  for  the  purposes  indicated,  is  not  only  mischievous  in 
theory,  but  deadly  in  results.  Inexperienced  and  untried  men  will  annoy  our 
societies  by  perpetual  suggestions  and  interference  with  local  legislation; 
for  while  in  general  our  anti-cruelty  laws  are  uniform,  yet  the  nature  and 
extent  of  these  acts  necessarily  differ  in  the  localities  which  they  affect. 

The  New  York  convention  of  our  societies  recently  repeated  their  dis- 
approval of  the  whole  scheme  and  refused  to  send  delegates  or  proxies  to 
the  ensuing  annual  meeting  of  the  American  Humane  Association.  The 
parent  society  of  the  whole  world,  the  New  York  Society  for  the  Prevention 
of  Cruelty  to  Children,  has  also  very  forcibly  defined  its  opposition  to  the 
measure,  which,  if  carried,  will  probably  disrupt  the  whole  association  as 
now  constituted.  Trusts  of  any  kind  are  not  popular  at  the  present  time. 
Their  extension  into  the  domain  of  philanthropy  is  to  be  dreaded.3 

The  National  Prison  Congress  of  1903. — The  Annual  Congress  of  the 
National  Prison  Association  was  opened  this  year  at  Louisville,  Ky.,  on  the 
evening  of  Saturday,  October  3,  and  adjourned  on  the  following  Thursday. 
The  value  of  such  a gathering,  as  was  insisted  at  the  closing  session,  is  to 

3 Contributed  by  Elbridge  T.  Gerry. 


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135 


be  found  in  its  influence,  first,  upon  the  delegates  in  attendance ; second,  upon 
the  community  in  which  its  discussions  are  held,  and  third,  upon  students 
and  the  reading  public,  through  the  ultimate  publication  of  its  proceedings. 
The  second  of  these  forms  of  usefulness  has  always  been  regarded  as  of 
special  importance,  so  that  the  prospect  of  it  has  determined  from  time  to 
time  the  choice  of  the  place  of  meeting.  In  this  instance,  as  in  some  earlier 
years,  the  results  in  this  respect  have  been  disappointing.  The  attendance  of 
citizens  of  Louisville  was  small.  The  great  Kentucky  Horse  Show,  the 
neighboring  drill  camp  of  the  state  militia,  and  the  city  campaign  for 
municipal  offices,  all  of  which  competed  for  their  attention,  diverted  them 
from  it,  and  eclipsed  it  as  attractions  and  as  subjects  for  comment.  Yet  a 
number  of  thoughtful  minds  were  won  by  the  discussions  to  a new  and  real 
interest  in  the  reform  of  penal  law  and  of  its  administration ; and  it  may 
be  hoped  that  this  interest  will,  in  some  cases,  be  permanent.  It  must  be 
confessed,  however,  that  no  such  impression  was  made  by  the  congress  upon 
the  public  opinion  of  Kentucky,  as  its  managers  had  been  justified  in  expecting. 

In  every  other  respect,  this  annual  congress  was  by  far  the  most  important 
and  successful  ever  held.  Almost  two  hundred  delegates  were  on  hand, 
representing  twenty-four  states  of  the  Union  and  the  Dominion  of  Canada. 
Sixty-eight  of  these  are  wardens,  jailors,  or,  under  some  other  title,  executive 
officers  of  penal  institutions,  in  direct  personal  charge  of  their  inmates. 
Thirty-nine,  at  least,  are  state  officers  or  members  of  boards,  in  control  of  such 
institutions.  Among  the  rest  were  judges  of  criminal  courts,  sheriffs,  prose- 
cuting attorneys,  probation  officers,  and  others  charged  with  the  administra- 
tion of  penal  law.  There  were  also  delegates  from  private  associations  and 
societies  for  the  protection  of  dependent  children  and  of  discharged  convicts, 
and  a number  of  representative  students  of  social  science.  But  the  constitution 
of  the  congress  is  changed  indeed,  since  the  time,  only  a few  years  ago,  when 
it  consisted  almost  wholly  of  volunteer  philanthropists ; when  not  five  prison 
wardens  in  the  United  States  could  be  persuaded  to  enter  it ; and  when  the 
actual  custodians  of  the  condemned,  and  the  “practical-minded”  public  at  large, 
were  almost  unanimous  in  the  chilling  indifference  with  which  they  regarded 
the  small  school  of  “sentimental  theorists”  calling  themselves  the  National 
Prison  Association. 

If  such  founders  of  the  association  as  Dr.  E.  C.  Wines,' of  New  York, 
and  Rutherford  B.  Hayes,  of  Ohio,  could  now  return  to  life  and  look  upon 
the  institution  they  created,  the  great  surprise  for  them  would  lie  in  the 
character  of  the  prison  wardens  who  are  its  main  support.  To  keep  in  sub- 
jection by  force  and  terror  a throng  of  desperate  outcasts,  to  make  their' 
compulsory  labor  profitable  to  the  state,  while  the  law  holds  them  in  bondage, 
and  then  to  turn  them  out,  one  by  one,  to  choose  between  the  hopeless  struggle 
of  the  jail-bird  for  decent  existence  and  a return  to  crime — was  this  ever  the 
ideal  of  a just  and  efficient  prison-keeper?  If  so,  no  one  would  suspect  it, 
on  seeing  the  wardens  and  superintendents  in  this  gathering.  Every  man  of 
them  seems  to  be  in  the  work  because  of  his  belief  in  the  capacity,  even  of 
fallen  humanity,  for  good.  Every  one  of  them  seems  to  be  an  earnest  student 
of  his  profession,  seeking  light  from  all  sources  upon  the  best  methods,  in 

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its  practice,  of  serving  the  state  and  its  wards.  Among  them  are  men  of  per- 
sonal power,  of  broad  culture,  of  original  thought  and  of  a large  benevolence; 
characters  which  would  administer  with  honor  and  distinction  any  private 
or  public  trust.  And  out'  of  their  rich  experience  and  practical  studies  they 
contributed  many  papers  and  discussions  which  will  give  permanent  value  to 
the  volume  of  proceedings. 

Among  the  questions  which  received  special  attention,  and  excited  the 
greatest  interest,  were  these : By  what  methods  and  agencies  can  the  state 

act  most  efficiently  in  preventing  crime?  What  can  be  done  to  make  public 
schools  more  useful  in  training  children  for  citizenship?  How  should 
“tramps”  be  dealt  with,  especially  upon  the  railroads?  What  is  the  value 
of  the  probation  system,  as  now  on  trial  in  many  states,  after  the  example  of 
Massachusetts;  and  how  far  can  the  principle  be  extended  to  advantage?  To- 
what  extent  is  discipline  in  penal  institutions  injured  by  political  influences? 
How  can  public  opinion  be  aroused  to  the  necessity  of  making  all  appoint- 
ments for  fitness  alone?  What  can  be  done  to  prevent  jails  and  prisons  in 
which  short  terms  are  served  from  continuing  to  be  the  recruiting  agencies  of 
the  criminal  class?  How  far  can  industry,  orderly  discipline,  and  moral 
influences  be  introduced  and  maintained  in  them?  What  measures  should  be 
taken  by  the  Federal* and  state  governments  to  remedy  the  confusion  and 
worthlessness  which  now  prevail  in  criminal  statistics ; and  to  secure  a trust- 
worthy collection  and  treatment  of  them?  What  improvements  can  be  made 
in  the  laws,  for  the  disposition  of  professional,  habitual  and  hereditary 
criminals? 

But,  indeed,  there  are  few  topics,  in  the  whole  range  of  law  and  adminis- 
tration relating  to  crime,  which  were  not  illuminated'  in  some  degree  by  the 
discussions.  The  chief  qualification  to  the  satisfaction  felt  in  these  was  the 
sense  of  incompleteness ; the  lack  of  time.  Had  the  valuable  papers  and 
memoirs,  prepared  in  advance  of  the  meeting,  been  printed  and  placed  in  the 
hands  of  members  on  their  arrival,  so  that  they  could  be  studied  at  leisure, 
and  the  hours  of  the  sessions  be  given  to  criticism,  application  and  debate,  the 
congress  would  have  been  far  more  fruitful.  It  is  to  be  hoped  that  this 
method  will  be  adopted  hereafter.4 


4 Contributed  by  Charlton  T.  Lewis. 


INDEX  OF  NAMES 


Abbreviations. — In  the  Index  the  following  abbreviations  have  been  used:  pap.,  prin- 
cipal paper  by  the  person  named;  p.  n.,  personal  note  on  the  person  named;  b.,  review  of 
book  of  which  the  person  named  is  the  author;  n.,  note  by  the  person  named;  r.,  review 
by  the  person  named. 


Abbott,  Edith,  338 
Abbott,  S.  W.,  516-517,  r. 

Abel,  A.  H.,  340 
Acton,  Lord,  350,  352 
Adams,  Grace,  390,  391 
Adams,  J.  Q.,  353-354,  r. 

Adams,  John  Quincy,  1,  2,  120,  356 

Adler,  M.,  526 

Adriance,  W.  M.,  340 

Agger,  E.  E.,  339 

Akamatsu,  Kakujiro,  337 

Albert,  Grace,  338 

Alderman,  E.  A.,  287-292,  pap.,  318 

Aldrich,  N.  W.,  229 

Aldrich,  W„  374 

Algue,  Jose,  408 

Allen,  YV.  H.,  222-223,  n.,  374,  515,  n.,  516- 
5i7,  b. 

Allman,  J.,  526 

Altemson,  B.  J.  R.,  390 

Ames,  H.  V.,  333-334,  P • n.,  346,  n.,  511,  n. 

Anderson,  Luther,  340 

Arbuthnot,  C.  C.,  336 

Aristotle,  357 

Armes,  W.  D.,  374,  b.,  509,  b. 

Armstrong,  S.  C.,  326 
Arnold,  Benedict,  244,  514 
Arnold,  Thomas,  237 
Ashley,  W.  J.,  526 
Aspe,  Inocentes,  407 
Aswell,  Prof.,  287,  290 
Atkins,  H.  T.,  376 
Atkinson,  J.  J.,  520-521,  b. 

Atkinson,  Mabel,  339 
Avebury,  520 
Aycock,  C.  B.,  295,  319 


Baedecker,  353 
Baer,  G.  F.,  213 
Bailey,  J.  W.,  295 
Bailey,  W.  B.,  335’336>  P • »• 

Bain,  A.,  526 
Baker,  M.  N.,  217  b.,  376 
Baldwin,  E.  H.,  243 
Bancroft,  W.  P.,  376 
Barlow,  A.  D.,  156 
Barnett,  G.  E.,  371 
Barringer,  P.  B.,  318 
Bates,  J.  L.,  378 
Bechtel,  E.  De  T.,  339 
Beck,  Herbert,  433-444,  pap. 

Beecher,  H.  W.,  31 1 

Bell,  H.  C.,  340 

Benjamin,  G.  G.,  340 

Bently,  Ruth,  339 

Benton,  E.  J.,  337,  507-508,  p.  n. 

Benton,  Thomas,  203 

Berge,  219 

Bergh,  Henry,  538 

Betts,  A.  U.,  404 

Betts,  W.  C.,  413-426,  pap. 

Bishop,  A.  L.,  340 
Bismarck,  Otto,  523 

Blaine,  J.  G.,  11,  38,  40,  125,  132,  et  seq., 
159,  201,  204,  206 
Blair,  Emma  H.,  243,  526 
Blair,  J.  L.,  375.  376 
Blakeslee,  G.  H.,  337 


Blanchard,  G.  B.,  489 
Blenker,  Ludwig,  220 
Bliss,  T.  H.,  139 
Boggess,  A.  C.,  340 
Bolivar,  Simon,  37,  208 
Bolles,  A.  S.,  228-230,  r. 

Bonaparte,  C.  J.,  376 
Bougie,  C.,  342 
Bowen,  E.  E.,  351 
Boyd,  T.  D.,  288 
Boyd,  W.  K.,  339 
Boynton,  A.  J.,  504  p.  n. 

Bramhall,  F.  D.,  338 
Branson,  E.  C.,  302,  318 
Breckenridge,  S.  P.,  217,  b.,  243 
Brentano,  Lorenz,  220 
Brooks,  R.  C.,  337 
Broome,  E.  C.,  217-218,  b.,  243 
Brough,  C.  IL,  330,  p.  n. 

Brougham,  Lord,  352 
Brown,  C.  C.,  375,  376 
Brown,  M.  S.,  341,  b. 

Bruns,  H.  D.,  376 

Bryce,  James,  237,  243,  350-353,  b. 

Buchanan,  James,  203 

Buchanan,  W.  I.,  45-55,  pap.,  197 

Bucher,  Karl,  353-354,  b. 

Buck,  Winifred,  374 
Buell,  A.  C.,  509,  b.,  526 
Bullock,  C.  J.,  331,  p.  n. 

Burch,  H.  R.,  338 

Burnham,  George,  Jr.,  213,  376 

Burr,  Aaron,  223,  224,  243 

Burrell,  I).  J.,  399 

Burt,  J.  H.,'Jr.,  104,  105 

Burton,  120,  122 

Bushee,  F.  A.,  374 

Butler,  J.  A.,  376 

Butler,  N.  M.,  374 

Buttrick,  Wallace,  276,  280,  288,  294,  321 
Byall,  J.  B.,  340 

Cadwalader,  J.  L.,  380,  381 
Cairns,  Earl,  350 

Calderon,  M.  A.,  57-65,  pap.,  207 
Caldwell,  B.  C.,  287,  288,  289 
Calhoun,  J.  V.,  287,  288,  291 
Callender,  G.  S.,  336,  p.  n. 

Callender,  S.  D.,  375 
Calmette,  Joseph,  243 
Calvo,  80 

Campbell,  H.  H.,  341,  b. 

Candler,  W.  A.,  302 
Capen,  S.  B.,  376 
Carlisle,  J.  M.,  118 
Carlton,  F.  T.,  491-503,  pap. 

Carlyle,  Thomas,  523 
Carpenter,  E.  J.,  243,  355*356,  b. 

Carstens,  C.  C.,  338 
Carter,  J.  C.,  376 
Cass,  Lewis,  116,  117,  118 
Casson,  H.  N.,  218-219,  b. 

Castro,  President,  29 
Catterall,  R.  C.  H„  337 
Caustier,  E.,  219,  b. 
di  Cavour,  C.  B.,  523 
Chadwick,  Sir  Edwin,  516 
Chamberlain,  Abiram,  540 


[549] 


Index  of  Names 


Charles  the  Great,  366,  522 
Charles  V,  60 
Chase,  H.  S.,  376,  377 
Cheyney,  E.  P.,  365-366,  r. 

Chitwood,  O.  P.,  339 
Chosnoff,  Jacob,  339 
Christian  V,  King,  101 
Christian  VI,  King,  106 
Cicero,  257 
Claflin,  W.  H.,  339 
Clark,  H.  H.,  340 
Claxton,  P.  P.,  245-248,  pap.,  318 
Clay,  Henry,  171,  203,  204 
Cleveland,  F.  A.,  213,  358-359,  505,  P • n. 

Cleveland,  Grover,  6,  7,  8,  77,  125,  130, 
133,  324,  373 
Clinton,  George,  243 
Cobbett,  514 
Colbert,  J.  B.,  100 
Colton,  Father,  399 
Columbus,  Christopher,  159 
Conaway,  H.  M.,  337 
Conigliani,  C.  A.,  243 
Conner,  J.  E.,  505-506,  p.  n. 

Constantine,  F.  V.  A.,  344 

Converse,  J.  H.,  213 

Cooley,  C.  H.,  243,  500,  517-518,  b. 

Cooper,  J.  C.,  374 

Copeland,  John,  338 

Cortez,  H.,  160,  533 

de  Coubertin,  P.,  374 

Cox,  I.  J.,  339,  355-356,  r.,  514,  n. 

Cragin,  E.  F.,  399 
Crandall,  R.  K.,  337 
Crawley,  520 
Cressey,  476 

Crummell,  Alexander,  231 
Cullom,  S.  M.,  202,  203,  207 
Curry,  J.  L.  M.,  275,  305,  328,  349 
Cushing,  Caleb,  122 
Cutler,  J.  E.,  336,  p.  n.,  338 

Dabney,  C.  W.,  277,  284-286,  pap.,  318 
Dahlinger,  C.  W.,  219-220,  b.,  521 
Daniels,  Josephus,  310-319,  pap. 

Davenport,  F.  G.,  338 

Davis,  C.  K.,  203 

Davis,  E.  H.,  339,  507,  p.  n. 

Davis,  J.  B.,  376 
Davis,  Jefferson,  257 
Davis,  John,  376 
Davis,  M.  M.,  Jr.,  339 
Deming,  H.  E.,  376 
Dewey,  D.  R.,  228-230,  b. 

Dewey,  George,  409 

Dewitt,  D.  M.,  220-221,  b.,  243 

Dickerson,  O.  N.,  339 

Dillard,  J.  H.,  287 

Dillon,  J.  F.,  380,  381 

Dinwiddle,  E.  W.,  394 

Disraeli,  C.  R.,  350,  352 

Dixon,  B.  F.,  295 

Dixon,  W.  H.,  243 

Dodd,  W.  F.,  338 

Dondlinger,  P.  T.,  340 

Dopp,  K.  E.,  374 

Dorsey,  C.  W.,  409,  41  x 

Dos  Passos,  J.  R.,  374,  509-510,  b. 

Doubleday,  Mrs.  F.  N.,  327 

Douglas,  R.  D.,  295 

Douglas,  S.  A.,  204 

Doyle,  Alexander,  399 

Drake,  Sir  Francis,  160 

Du  Bois,  W.  E.  B.,  230-232,  b.,  243,  390 

Duff,  R.  A.,  243,  356-358,  b. 

Durkheim,  Emile,  341-342,  b.,  37 4,  520 
Dutchcr,  G.  M.,  337 

.Early,  H.  W.,  339 


Eaton,  A.  B.,  338 
Eckenrode,  H.  J.,  339 
Edgar,  W.  C.,  342,  b.,  374 
Edgeworth,  F.  Y.,  234,  236 
Edmondson,  C.  H.,  339 
Edwards,  C.  R.,  375 
Eggleston,  Edward,  237 
Eggleston,  J.  D.,  Jr.,  318 
Elizabeth,  Queen,  517 
Elkinton,  Joseph,  243,  342-343,  &• 
Ellis,  W.  H.,  510,  b. 

Ellwood,  C.  A.-,  369-370,  r. 

Ely,  R.  T.,  374,  518-520,  b. 

Emory,  Frederic,  151-156,  pap.,  202 

Engel,  A.,  243 

Engels,  Dr.,  358 

Engels,  F.,  526 

Engle,  J.  F.,  340 

Erindnnger,  102,  106 

Evarts,  W.  M.,  124,  204 


Fairchild,  F.  R.,  340 

Fairlie,  J.  A.,  376 

Farnam,  H.  W.,  541 

Fauna,  Federico,  408 

Fellows,  G.  E.,  221,  b.,  347-348,  n. 

Fetter,  F.  A.,  360-361,  r. 

Feuerbach,  L.  A.,  526 
Field,  A.  S.,  340 
Finley,  J.  H.,  505,  p.  n. 

Fish,  Hamilton,  122,  123 
Fish,  Stuyvesant,  477 
Fishberg,  Maurice,  542 
Fite,  E.  D.,  339 
Flack,  H.  E.,  339 
Fleming,  W.  L.,  335,  p.  n. 

Flint,  C.  R.,  199,  200,  202 
Folk,  J.  W„  375 
Folwell,  W.  W.,  529 
Ford,  William,  541 
de  Forest,  R.  W.,  397 
Fornelli,  N.,  243 
Fortier,  Alcee,  289 
Foster,  J.  W.,  133,  221-222,  b . 
Frankel,  L.  K.,  542 
Franklin,  Benjamin,  195 
Fraser,  Bishop,  350 
Frazer,  520 
Frazier,  W.  W.,  213 
Frederick,  K.  T.,  340 
Frederick  the  Great,  523 
Frederik  V,  King,  103,  106 
Freeman,  A.  T.,  445-450,  pap. 
Freeman,  E.  A.,  350 
Frelinghuysen,  F.  T.,  38,  132 
French,  II.  B.,  376 
Freund,  Ernst,  343,  b.,  374 
Frisbee,  W.  A.,  375 
Frost,  N.  G.,  285 
Frye,  N.  P.,  133 

Fulton,  R.  B.,  290,  304-309,  pap. 
Fyffe,  523 


Galloway,  Joseph,  243 

Gannaway,  J.  W.,  340 

Garelli,  A.,  374 

Garfield,  H.  A.,  375,  376 

Garfield,  J.  A.,  124,  262 

Garner,  J.  W.,  356-358,  r.,  506,  p.  n. 

Garvin,  L.  F.  C.,  538 

Gay,  E.  F.,  331,  p.  n. 

Gazzam,  J.  M.,  213 
Gerrare,  Wirt,  232-234,  b.,  243 
Gerry,  E.  T.,  537,  538,  546 
Giddings,  F.  PL,  213 
Gill,  W.  L.,  376 

Gladstone,  W.  E.,  350,  351,  352,  523 
Glenn,  G.  P.,  257-260,  pap. 

Godkin,  E.  L.,  350 


[550] 


Index  of  Names 


von  Goethe,  J.  W.,  250 
Gonzaga,  G.,  406 
Goode,  J.  P.,  219  n.,  366-369,  r. 
Gotama,  369 

Graham,  J.  B.,  280-283,  pap. 
Granger,  D.  L.  D.,  384 
Grant,  U.  S.,  133 
Graser,  F.  H.,  340 
Grattan,  323 

Greeley,  Horace,  243,  345 

Green,  J.  R.,  350 

Green,  T.  H.,  350,  351,  357 

Greene,  F.  V.,  397 

Grier,  D.  H.,  399 

Griffis,  W.  E.,  243,  510-511,  b. 

Griffith,  E.  C.,  337 

Grotius,  H.,  357 

Grout,  E.  M.,  380,  381 

Guitteau,  W.  B.,  380 

Guizot,  F.  P.  G.,  352 

Gunn,  468 

Guthrie,  G.  W.,  376 


Hagerty,  J.  E.,  239-242,  r.,  520-521,  r. 
Haines,  C.  G.,  339 
Halevy,  Elie,  374 
Hall,  A.  C.,  507,  p.  n. 

Hall,  C.  C.,  243,  511,  b. 

Hall,  G.  S„  328 

Hall,  Lyman,  266-270,  pap. 

Halsey,  F.  W.,  511-512,  b.,  526 

Halstead,  Marshal,  530 

Hamilton,  Alexander,  195,  337,  521,  522 

Hamilton,  I.  C.,  338 

Hamilton,  J.  G.  de  R.,  339 

Hammurabi,  King,  344 

Hanna,  M.  A.,  512 

Harland,  Edward,  541 

Harnack,  Adolph,  343-344,  b. 

Harris,  C.  W.,  243 

Harris,  William,  238 

Harris,  W.  T.,  312 

Harrison,  Benjamin,  201,  206 

Harrison,  C.  C.,  197 

Hart,  A.  B.,  374,  376,  512,  b.,  526 

Hartwell,  E.  M.,  376 

Haskins,  C.  W.,  243,  358-359.  377.  5<>5 

Hattori,  Yukimasa,  337 

Hawkins,  Sir  John,  160 

Haworth,  P.  L.,  338 

Hay,  John,  18 

Hayes,  R.  B.,  124,  547 

Hayward,  D.  C.,  302 

Headley,  J.  T.,  222,  b.,  243 

Heard,  W.  W.,  288,  289 

Hecker,  Frederick,  220 

Hedges,  Samuel,  344,  b.,  374 

Hemmon,  J.  C.,  339 

Henderson,  J.  B.,  39 

Henry  VIII,  523 

Herran,  General,  116,  117,  118 

Herrman,  51 1 

Hidalgo,  y Costilla,  208 

Hill,  J.  J.,  486 

Hill,  W.  B.,  302,  320-329,  pap. 

Himes,  287 
Hinckley,  F.  W.,  528 
Hineman,  290 
Hinsdale,  Dr.,  257 
Hoar,  G.  F.,  141,  142 
Hobbes,  Thomas,  357,  358 
Hobson,  J.  A.,  512-513,  b. 

Hockett,  H.  C.,  340 
Hodder,  Alfred,  374,  513,  b. 

Hodge,  H.  H.,  338 
Hodgskin,  Thomas,  374 
Hoffding,  H.,  374 
Hogarth,  D.  G.,  359-360,  b.,  374 
Hollis,  Porter,  339 


Hopkins,  Mark,  262 
Host,  Georg,  99 
Hotchkiss,  W.  E.,  339 
Houston,  D,  F..  264,  318 
Huebner,  Solomon,  475-490,  pap . 
Hulbert,  A.  B.,  222,  b.,  243 
Hunt,  Agnes,  335  p.  n. 

Hunt,  G.,  513  b. 

Hunter,  Robert,  397 
Hurlbut,  S.  A.,  122 
Huxley,  T.  H.,  241 


Iverson,  Jorgen,  100 

Jackson,  Andrew,  348 
James,  E.  J.,  213,  376 
James,  William,  328 
Janes,  H.  L.,  339 
Tarvis,  T.  J.,  295 
lean  II,  243 

Tefferson,  Thomas,  176,  262,  306,  326 
fenks,  W.  D.,  394 
fernegan,  M.  W.,  338 
Terome,  W.  T.,  397,  513 
Tessel,  Sir  George,  350 
Jevons,  W.  S.,  370 
Joerns,  W.  G.,  386 
Johns,  C.  H.  W.,  243,  344-345,  b. 
Johnson,  Andrew,  220,  221,  243 
Johnson,  A.  S.,  337 
Johnson,  D.  B.,  302,  318 
Johnson,  E.  R.,  213,  506 
Johnson,  H.  T.,  339 
Johnson,  T.  L.,  382 
Johnson,  William,  509,  526 
Johnston,  Frank,  346 
Jonas,  Stephan,  243 
Jones,  C.  L.,  340 
Jones,  F.  L.,  252 
Jones,  J.  K.,  142 
Jorgens,  Max,  243 
Joyner,  J.  Y.,  295,  300,  301 
Judson,  F.  N.,  360-361,  b. 

Judson,  H.  P.,  526 


Kamada,  Tokichi,  339 
Kapp,  Frederick,  89 
Kawakami,  K.  K.,  340 
Keep,  A.  B.,  339 
Keller,  A.  G.,  97-110,  pap. 

Kellett,  E.  K.,  34 3 

Kelsey,  Carl,  230-232,  r.,  338,  517-518, 

Kemmerer,  E.  W.,  337 

Keyes,  Mrs.  C.  W.,  529 

Kidd,  Benjamin,  368 

Kirk,  William,  339 

Kirkland,  J.  H.,  249-256,  pap.,  262 

Knowlton,  D.  C.,  339 

von  Ivomorzynski,  J.,  243 

Krehbiel,  E.  B.,  338 

Kruesi,  W.  E.,  340 

Krusi,  H.,  41 1 


Labat,  Abbe,  107 
Lambert,  E.,  374 
Lang  A.,  374,  520-521,  b. 

La  Salle,  Sieur  de,  356 
Latane,  J.  H.,  113-126,  pap. 

Lauck,  W.  J.,  338 
Lauer,  C.  N.,  459-469,  pap. 

Laughlin,  J.  L.,  243,  361-365,  b.,  526 

Lavisse,  E.,  526 

Lavroff,  P.,  374 

Lawrence,  D.  H.,  376 

Lawson,  V.  F.,  213 

Lay,  J.  G.,  155 

Leacock,  S.  B.,  337 

Le  Conte,  Joseph,  374,  509,  b. 

Lederer,  John,  345 


[5Si] 


Index  of  Names 


Lee,  Joseph,  222-223,  b. 

Lefevre,  A.,  243 
Lemont,  F.  H.,  339 
Leon,  P.,  374 

de  Lesseps,  Ferdinand,  124,  125 
Levey,  E.  J.,  380,  381 
Levy,  Hermann,  243 
Lewis,  Austin,  526 
Lewis,  C.  T.,  548 
Lewis,  G.  R.,  339 
Lincoln,  Abraham,  119,  220,  341 
Lingelbach,  W.  E.,  219-220,  n.,  334,  p.  n., 
350-353,  r.,  522-523,  r. 

Linn,  W.  A.,  243,  345,  b. 

Lippincott,  J.  B.,  213 

Lobingier,  C.  S.,  338 

Loomis,  F.  B.,  1-19,  pap.,  199 

Lorenz,  Dr.,  399 

Louis  XI,  243,  523 

Low,  Seth,  375,  381,  397,  398,  513 

Low,  W.  G.,  376 

Lowe,  Robert,  350 

Loyola,  Ignatius,  523 

Luetscher,  G.  D.,  521-522,  b. 

Luther,  Martin,  322,  523 
Lyle,  E.  K„  338 

Machiavelli,  N.,  357,  526 
Madison,  James,  513 
Maher,  R.  G.,  339 
Mann,  Horace,  176 
Manning,  Cardinal,  350,  352 
Manning,  W.  R.,  338 
Marburg,  Theodore,  213 
Mariscal,  Senor,  51 
Marquette,  Father,  344,  374 
Marseille,  F.  H.,  343 
Marsh,  F.  B.,  504,  p.  n. 

Marshall,  Alfred,  234,  235 
Marshall,  John,  195 
Martin,  523 
Martin,  D.  S.,  302 
Martin,  S.  O.,  339 
Masaniello,  329 
Mathews,  Alfred,  223,  b. 

Matsuo,  Otijero,  340 
Mauss,  M.,  342 
May,  M.  B.,  383 
Mayo-Smith,  Richmond,  476 
v.  Mayr,  Georg,  526 
McCaleb,  N.  F.,  223-224,  b.,  243 
McClintock,  Oliver,  376 
McConkey,  J.  G.,  527 
McCracken,  523 

McCrea,  R.  C.,  330,  p.  n.,  518-520,  r. 
McFarland,  J.  H.,  376 
McIntosh,  Hector,  376 
Mclver,  C.  D.,  293-303,  pap. 

McKee,  Alexander,  121 
McKinley,  A.  E.,  334 
McKinley,  William,  137,  140,  204 
McLennan,  J.  E.,  520 
McMaster,  J.  B.,  333 
McVey,  F.  L.,  332,  p.  n. 

Meade,  Emily  F.,  238-239,  r.,  524-525,  r. 

Meade,  E.  S.,  213,  224-225,  n.,  361-365  r.,  374 

Melton,  G.  L.,  338 

Metternich,  Prince,  352 

Meyer,  Dr.,  521 

Meyer,  B.  H.,  345-346,  b.,  374 

Miller,  E.  T.,  339 

Miller,  H.  A.,  339 

Miller,  R.  B.,  399 

Millis,  H.  A.,  370-372,  r. 

Mims,  Edwin,  261-265,  pap. 

Mirabeau,  Comte  de,  523 
de  Miranda,  Francisco,  338 
Mitchell,  T.  W.,  506,  p.  n. 

Monroe,  James,  1,  et  seq.,  355 


Montague,  G.  H.,  513  b.,  526 
Moore,  J.  B.,  3,  n,  12,  33-44,  pap.,  119, 
196,  197 

Moore,  W.  U.,  339 

Morazan,  Francisco,  208 

Morgan,  J.  P.,  512 

Morgan,  J.  T.,  142 

Morgan,  L.  H.,  520 

Moulford,  R.  J.,  337 

Mudie,  E.  E.,  339 

Muhse,  A.  C.,  339 

Mulroy,  T.  M.,  399 

Munro,  D.  C.,  365-366,  b.,  522 

Murphy,  E.  G.,  280,  390 

Myers,  A.  C.,  340 

Napoleon,  161,  222,  243,  523,  526 

Napoleon,  Louis,  352 

Nelson,  Ernesto,  169-176,  pap.,  202 

Niven,  James,  531 

Nordin,  W.  T.,  339 

Northcote,  S.  H.,  350 

Nott,  J.,  86,  87 

Novicow,  J.,  374 

Nye,  W.  G.,  529 

Ochs,  G.  W.,  213 
Odell,  B.  B.,  Jr.,  398 
Ogden,  R.  C.,  271-279,  pap. 

Ogg,  F.  A.,  339 

Oliver,  C.  N.  J.,  386 

Olmstead,  A.  T.,  339 

Olmstead,  C.  M.,  337 

Olney,  Richard,  7 

Orth,  S.  P„  337,  374 

Outerbridge,  Jr.,  A.  E.,  427-432,  pap. 

Oxholm,  108 


Page,  R.  B.,  338 

Page,  W.  PI.,  318 

Paine,  R.  T.,  213 

Palmer,  E.  A.,  337 

Palmerston,  Lord,  78,  92 

Parnell,  C.  S.,  350,  352 

Patten,  S.  N.,  213,  359-360,  r.,  366-369,  b. 

Patterson,  Mrs.  Lindsay,  298 

Patterson,  W.  L.,  340 

Paxson,  F.  L.,  330,  p.  n.,  338,  526 

Payne,  S.  E.,  138 

Peabody,  H.  G.,  514,  b.,  526 

Pearson,  Rear  Admiral,  121 

Peck,  W.  F.,  403 

Pedro,  Dom,  161,  163 

Peel,  Sir  Robert,  351 

Pell,  R.  P.,  318 

Pendleton,  E.  H.,  376 

Penn,  William,  243,  517 

Penniman,  J.  H.,  217-218,  n. 

Pennypacker,  S.  W.,  514 
Petermann,  A.,  28 
von  Petersen,  Bernhard,  99 
Peterson,  C.  A.,  340 
Petin,  Hector,  7,  8 
Petritsch,  L.,  243 
Pettus,  E.  W.,  142 
Pickett,  Adam,  337 
Pierce,  G.  F.,  312 
Pierson,  N.  G.,  234-236,  b. 

Pizarro,  F.,  29,  59,  160 
Plato,  251,  255,  324,  357 
Pliny,  G.  P.  S.,  180,  181 
Polk,  J.  K.,  1,  et  seq. 

Pollock,  Frederick,  356,  357 
Pope,  Alexander,  390 
Powers,  John  O.,  470-474,  pap. 

Pratt,  S.  S.,  224-225,  b.,  483 
Preston,  H.  G.,  338 
Preston,  J.  R.,  304,  305 
Preston,  4 


Index  of  Names 


Price,  L.  L.,  236 

Price,  R.  R.,  331-332,  p.  n. 

Price,  W.  H.,  334,  p.  n. 

Pyfferoen,  Oscar,  225,  b. 

Queen  of  Spain,  3,  et  seq. 

Rankin,  Hugh,  336,  p.  n.,  340 

Rawles,  W.  A.,  331,  p.  n.,  337,  374 

Reed,  A.  Y.,  338 

Reed,  J.  H.,  338 

Reinsch,  P.  S.,  375 

Rhoades,  M.  C.,  340 

Rhys-Davids,  T.  W.,  369-370,  b.,  37 4 

Rice,  W.  C.,  339,  340 

Richardson,  Charles,  375,  376 

Richelieu,  328 

Richman,  I.  B.,  237-238,  b. 

Richmond,  Shannon,  407 
Riis,  J.  A.,  222 
Riley,  F.  L.,  346,  b. 

Ritter,  J.  H.,  451-458,  pap. 

Rives,  G.  L.,  380 

Roberts,  F.  H.  H.,  330-331,  p.  n. 
Robertson,  J.  A.,  243,  526 
Robertson,  W.  S.,  338 
Robinson,  C.  M.,  243,  376 
Robinson,  J.  H.,  243 
Rockefeller,  J.  D.,  512 
Rockhill,  W.  W.,  192,  193 
Roeder,  Adolph,  529 
Romero,  Matias,  120,  193 
Roosevelt,  Theodore,  11,  13,  137,  138,  139, 
140,  143 

Root,  Elihu,  141 
Ross,  A.  F.,  339 
Ross,  James,  407 
Rousseau,  J.  J.,  540 
Rowe,  L.  S.,  197,  213, 

Russell,  Earl,  43,  120 
Russell,  William,  516 


221-222,  n. 


Sajous,  A.  E.,  243 

Sale,  Captain,  271 

Salgar,  General,  122,  123 

San  Martin,  208 

Santana,  President,  5 

Scales,  A.  M.,  295 

Schafer,  W.  A.,  528 

Schaffner,  M.  A.,  338 

Scheil,  V.,  344 

Schmoller,  G.,  243,  331 

Schoff,  W.  H.,  157-168,  pap.,  199,  202 

Scholz,  R.  F.,  340 

Schulz,  C.  F.,  340 

Schurz,  Carl,  4,  220 

Schuyler,  R.  L.,  339 

Scidmore,  E.  R.,  346,  b. 

Scott,  G.  W.,  338 

Schwab,  C.  M.,  5x2 

Scott,  F.  H.,  375 

Scott,  G.  W.,  69-82,  pap.,  202 

Scott,  J.  B.,  514,  b.,  526 

Scott,  W.  A.,  370-372,  b. 

Scruggs,  W.  L.,  125 

Seward,  W.  H.,  3,  4,  6,  1x9,  et  seq.  204 
Shaw,  H.  B.,  334-335,  P • n. 

Shearer,  A.  H.,  337 

Shepard,  E.  M.,  380 

Shepard,  W.  J.,  339 

Shepherd,  R.  P.,  337 

Sherman,  John,  203 

Shimmell,  L.  S.,  334 

Shoemaker,  M.  M.,  225-226,  b.,  244 

Showalter,  Prof.,  287 

Shuman,  W.  N.,  340 

Sidgwick,  Henry,  350 

Siever,  Dr.,  28 

Sigel,  Franz,  220 


Sikes,  G.  R.,  340 
Simms,  W.  G.,  264 
Simon,  Charles,  516 
Simons,  A.  M.,  226-227,  &• 

Singleton,  Esther,  227-228,  b. 

Small,  J.  H.,  295 

Smalley,  H.  S.,  337,  504,  p.  n. 

Smith,  Adam,  427 

Smith,  Hoke,  302,  319,  390 

Smith,  J.  R.,  202,  232-234,  r.,  338,  346,  n. 

348-349,  n.,  349-350,  n.,  506-507,  p.  n. 
Smith,  Preserved,  339 
Smith,  W.  H.,  244 
Smith,  W.  R.,  335,  p.  n.,  337,  350 
Snider,  G.  E.,  339 
Snow,  514 
Socrates,  251 
Spears,  J.  R.,  526 

Spencer,  Herbert,  175,  241,  369,  519,  520 

Spinoza,  Benedict,  243,  356,  357 

Sprague,  J.,  87 

St.  Augustine,  343,  344,  357 

Stangeland,  C.  E.,  338 

Stanley,  A.  P.,  350,  351,  352 

Stead,  W.  T.,  171 

Stearns,  F.  P.,  526 

Steele,  E.  J.,  541 

Steele,  W.  M.,  289 

Steinmetz,  S.  R.,  526 

Stevens,  Elizabeth,  512 

Stevens,  F.  E.,  381 

Stevens,  Thadaeus,  220 

Stevenson,  J.  W.,  380 

Stilnam,  U.,  401 

Stites,  S.  H.,  338 

Stone,  S.  H.,  536 

Story,  Joseph,  195 

Strong,  C.  A.,  244 

Strong,  380,  381 

Strong,  T.  N.,  376 

Stuckenberg,  J.  H.  W.,  374 

Sullivan,  122 

Sumner,  Charles,  203,  220 
Sumner,  H.  L.,  340 
Sumner,  W.  G.,  336 
Supan,  25 

Swain,  H.  H.,  332-333,  p.  n.,  378 
Symmes,  F.  J.,  375 

Taft,  W.  H.,  41 1 

Tait,  A.  C.,  350 

Talbot,  Sir  William,  345 

Tamerlane,  254 

Taylor,  Austin,  530 

Taylor,  F.  W.,  468 

Taylor,  H.  C.,  177-187,  pap.,  338 

Terrill,  J.  M.,  302 

Terry,  A.  G.,  339 

Textor,  L.  E.,  340 

Thaer,  Albrecht,  180 

Thomas,  D.  Y.,  337 

Thomas,  M.  G.,  340 

Thomas,  W.  I.,  526 

Thompson,  J.  G.,  338 

Thompson,  W.,  244 

Thormohlen,  102 

Thornton,  Sir  Edward,  75 

Thornton,  235 

Thorstenberg,  H.  J.,  340 

Tibbits,  Dudley,  376 

Tillman,  B.  R.,  142 

Todd,  C.  B.,  244,  514,  b. 

Toombs,  Robert,  312 
Tourgee,  31 1 
Tracy,  Cornelius,  541 
Trajan,  254 
Trent,  W.  P.,  264 
Trescott,  W.  H.,  133 
Trollope,  Anthony,  350,  352 


Index  of  Subjects 


Turgot,  337 

Turiello,  Pasquale,  227,  b. 

Tylor,  520 

Van  Middeldyk,  R.  A.,  244 
Van  Rees,  99 

Van  Tyne,  C.  H.,  237-238,  r.,  347-348,  b., 
504-505,  p.  n. 

Van  Vorst,  Mrs.  John,  238-239,  b. 

Van  Vorst,  Marie,  238-239,  b. 

Varas,  39 
Veblen,  T.  B.,  526 

Veditz,  C.  W.  A.,  225,  n.,  343-344,  n. 
Veloz-Goiticoa,  n.,  207 
de  Villate,  174 

Wagner,  25 

Wagstaff,  H.  M.,  339 

Walker,  William,  37 

Wallis,  Louis,  515,  b.,  5 26 

Walsh,  C.  M.,  244 

Walton,  C.  S.,  83-96,  pap.,  202 

Ward,  L.  F.,  239-242,  b. 

Washington,  B.  T.,  231,  288,  321,  329,  390 

Washington,  George,  195,  208,  521 

Watkins,  G.  P.,  339 

Wayland,  Francis,  541 

Wayne,  Anthony,  526 

Webster,  Daniel,  347,  348,  356,  505 

Webster,  Sir  Richard,  436 

Wellby,  M.  S.,  348-349.  b.,  374 

Wells,  Rolla,  375 

Wells,  T.  D.,  540 

Werfel,  Johan,  99,  108 

West,  H.,  99 

Westermarck,  520 

Weston,  S.  F.,  337,  374 

Whalen,  John,  380 

Wharton,  F.,  11,  12,  121 

Wharton,  Anne  H.,  227-228,  b. 

Wharton,  Joseph,  194 
Wheeler,  C.  A.,  339 
Whinery,  S.,  244,  515,  b. 

Whitcomb,  Merrick,  244,  522-523,  b. 

White,  R.  B.,  295  


White,  W.  A.,  373 
Whiting,  William,  87 
Whittier,  J.  G.,  260 
Wilcox,  W.  R.,  397 
Wilder,  A.  P.,  375 
Wildman,  M.  S.,  338 
Wilkinson,  James,  224 
Williams,  Roger,  237,  238 
Williams,  Talcott,  23-31,  pap.,  197 
Willis,  H.  P.,  127-147,  pap.,  234-236,  r., 
243 


Wilson,  275 
Wilson,  James,  186 
Wilson,  T.  H-,  213 
Wilson,  W.  P.,  199 
Wilson,  Woodrow,  318 
‘Winckler,  H.,  344 
Wines,  E.  C.,  547 
Wines,  F.  H.,  545 
Wing,  D.  L.,  338 
von  Wolfring,  Lydia,  537 
Wood,  Leonard,  141 
Wood,  Stuart,  197,  213 
Woodbine,  G.  E.,  340 


Woodburn,  J.  A.,  372-373,  b. 

Woodlock,  T.  F.,  478 

Woodruff,  C.  R.,  213,  375,  376,  377,  379,  512- 


5i3  n. 

Woods,  R.  A.,  524-525  b. 

Woolsey,  Mrs.  Kate,  244,  349,  b. 
Wotzel,  A.  A.,  234 
Wright,  J.  M.,  339 
Wrong,  G.  M.,  526 
Wynne,  J.  J.,  344 


Young,  H.  G.  W.,  340 
Young,  J S.,  337 

Young,  J.  T.,  372-373,  r-,  521-522,  r. 


Zartman,  L.  W.,  339 
Zeno,  251 
Zerman,  76 
Zerwick,  C.  F.,  340 

Zimmerman,  Jeremiah,  349-350,  b.,  374 


INDEX  OF  SUBJECTS 

[ Titles  of  papers  are  printed  in  small  capitals  ] 


Advertising,  470-474.  Article  must  have 
merit  and  time  must  be  opportune,  470; 
possibilities  of  advertising,  471;  advan- 
tages enumerated,  471-472;  methods  dis- 
cussed, 472;  business  of  the  advertising 
agency,  474 

Africa.  “Twixt  Sirdar  and  Menelik,”  by 
M.  S.  Wellby,  note,  348-349 
Agriculture.  Growth  and  Management  of 
American  Agriculture,  491-503.  States 
classified  in  eight  groups  with  reference 
to  agricultural  characteristics,  491;  char- 
acteristic features  of  each  group,  491- 
94;  number  and  size  of  farms  495; 
ertilizers,  497;  ownership  of  farms,  498; 
farm  machinery  and  implements,  499; 
population  of  rural  communities,  500; 
summary,  501-503 

“The  American  Farmer,”  by  A.  M. 

Simons,  note,  226-227 
Alabama.  Current  Problems  in.  See 
Schools 

Arbitration.  The  Application  of  the 
Principle  of  International  Arbitra- 
tion on  the  American  Continents,  35- 
44.  Nature  of  grievances  adjustable  by 
arbitration,  35;  efforts  to  establish  general 

[554] 


principle  of  arbitration,  36-41;  applica- 
tion of  the  principle,  42;  future  of  inter- 
national arbitration,  43 
Argentine.  Argentine  Commerce  with 
United  States  and  Europe.  See  Com- 
merce 

Arizona.  “Glimpses  of  the  Grand  Canyon 
of  Arizona,”  by  H.  G.  Peabody,  note,  514 
Auditing.  The  Value  of  Auditing  to  the 
Business  Man,  433-444.  Functions  of 
the  accountant,  433;  definition  of  an 
audit,  434;  errors  to  be  detected  by  the 
auditor,  435;  methods  of  detecting  these 
errors,  436-439;  how  leading  accounts  are 
usually  audited,  440;  audit  of  credit  sales, 
440;  accounts  and  bills  receivable,  depre- 
ciation, 441;  audit  of  surplus,  443-444. 
Biography.  “Studies  in  Contemporary  Biog- 
raphy, ,T  by  J.  Bryce,  review,  350-353 

“The  Real  Benedict  Arnold,”  by  C.  B. 
Todd,  note,  514 

“Horace  Greeley,”  by  W.  A.  Linn, 
note,  345 

“Sir  William  Johnson,”  by  A.  C. 
Buell,  note,  509 

“The  Autobiography  of  Joseph  Le 
Conte,”  edited  by  W.  D.  Armes,  note, 

509 


Index  of  Subjects 


“The  Life  of  James  Madison,”  by  G. 
Hunt,  note,  513 

“The  Letters  of  Daniel  Webster,”  by 
C.  H.  Van  Tyne,  note,  347-348 
Charities,  Philanthropy  and  Social  Prob- 
lems, Notes  on,  390-401;  535-548 
Charity.  Boston  Children’s  Aid  Society, 
397-398 

Impressions  of  the  National  Conference 
of  Charities  and  Corrections,  390-394 
Jewish  Charity,  542 

Child  Labor.  Massachusetts  Child  Labor 
Law,  540 

Children.  Children’s  Guardians,  New 
Jersey  State  Board  of,  535-536 


Children’s  Institutions  Department  of 
Boston,  Report  of,  536-537 
Prevention  of  Cruelty  to  Children, 
537-538 

Civics.  Civic  activity  in  Duluth,  386 

Civic  Improvement  Associations  in  Min- 
neapolis, 528-529 

New  Jersey  State  Civic  Federation,  529- 
530 

Civic  Organization  in  Cincinnati,  383 
Colombia.  Trade  Relations  of  the 
United  States  and  Colombia!  See 
Trade 


Constitutional  Amendments  in  Cincinnati, 

383-384 

Commerce.  Argentine  Commerce  with 
United  States  and  Europe,  171-176. 
Similarity  of  Argentine  and  American 
products,  1 7 1 ; transportation  facilities, 
172;  leading  industries  of  Argentine,  172- 
174;  Argentine  products  most  in  demand 
in  Europe,  174;  European  capital  has 
been  largely  employed,  175;  closer  rela- 
tions between  Argentine  and  United 
States  desirable,  176 

Cost-Keeping.  The  Importance  of  Cost- 
Keeping  to  the  Manufacturer,  459-469. 
The  necessity  for  cost-keeping,  459;  ac- 
counting for  labor  costs,  400;  accounting 
for  materials,  461;  accounting  for 
equipment  costs,  general  expenses  and  de- 
preciation, 463-465;  daily,  weekly  and 
monthly  statements,  466;  position  the 
cost-keeper  should  hold  in  the  com- 
pany’s organization,  468 

Cuba.  Reciprocity  with  Cuba.  See  Reci- 
procity 

Diplomacy.  “American  Diplomacy  in  the 
Orient,”  by  J.  W.  Foster,  note,  221-222 

Domestic  Economy.  “How  to  Keep  House- 
hold Accounts,”  by  C.  W.  Haskins,  re- 
view, 358-359 

Economics.  “Arbeit  und  Rhythmus,”  by 
K.  Bucher,  review,  353-354 

“Heredity  and  Social  Progress,”  by  S. 

N.  Patten,  review,  366-369 
“The  Principles  of  Economics,”  by  N. 
G.  Pierson,  review,  234-236 

Education.  The  Conference  for  Educa- 
tion in  the  South,  271-279.  Origin  of 
the  conference,  271;  its  membership,  272- 
273;  results  of  the  conference,  276-277; 
present  problems,  278 

“A  Historical  and  Critical  Discussion 
of  College  Admission  Requirements,” 
by  E.  C.  Broome,  note,  217-218 
The  Progress  of  Southern  Educa- 
tion, 3 1 0-3 1 9.  Obstacles  to  edu- 
cational progress,  310;  negro  pov- 
erty, lack  of  teachers,  geographical 
barriers,  3 10-3 14;  growth  of  prin- 
ciple of  local  taxation,  315;  increase 
of  state  appropriations,  317-31 9 


England.  Children’s  Employment  Bill  in, 
398 

Europe.  Argentine  Commerce  with 
United  States  and  Europe.  See  Com- 
merce 

European  Trade  Relations  with 
South  America.  See  Trade. 

Some  of  the  Causes  of  Conflict  Be- 
tween Europe  and  Latin  America. 
See  Latin  America 

“A  History  of  Modern  Europe,”  by  M. 
Whitcomb,  review,  522-523 
Finance.  “Financial  History  of  the  United 
States,”  by  D.  R.  Dewey,  review,  228-230 
“The  Work  of  Wall  Street,”  by  S.  S. 
Pratt,  note,  224-225 

Fire  Insurance.  Rates  and  Methods,  413- 
426.  Dividends  paid  in  1903  by  Ameri- 
can joint-stock  fire  insurance  companies, 
413;  market  price  of  stocks,  414;  com- 
missions and  brokerage,  415;  average 
yearly  premiums,  417;  income  of  insur- 
ance companies,  419;  surplus  fund  to 
cover  unusual  losses,  420;  capitalization, 
421;  improvements  by  public  to  prevent 
fires,  423;  advantages  of  mutual  benefit 
organizations,  425 

Geography.  “The  Nearer  East,”  by  D.  G. 
Hogarth,  review,  359-360 

Economic.  “Les  Entrailles  de  la 
Terre,”  by  E.  Caustier,  note,  219 
Government.  “American  Republic  and  Its 
Government,”  by  J.  A.  Woodburn,  re- 
view, 37.2-373 

“Empire  and  Sovereignty,”  by  E. 
Freund,  note,  343 

“Ohio  Municipal  Code,”  by  W.  H. 
Ellis,  note,  510 

Notes  on  Colonies  and  Colonial  Gov- 
ernment, 402-41 1 
Graft,  542-545 

Hebrew  Technical  Institute,  400-401 
History.  “The  Aaron  Burr  Conspiracy,”  by 
W.  F.  McCaleb,  note,  223-224 

“The  American  Advance,”  by  E.  J. 

Carpenter,  review,  355-356 
“The  Anglo-Saxon  Century  and  the 
Unification  of  the  English-Speaking 
People,  ’ by  J.  R.  Dos  Passos,  note, 
509-510 

“The  Confessions  of  St.  Augustine,  by 
A.  Harnack,  note,  343-344 
“Discoveries  of  John  Lederer,”  trans- 
lated by  W.  Talbot,  note,  345 
“The  Doukhobors,”  by  J.  Elkinton, 
note,  342-343 

“Epoch-Making  Papers  in  United 
States  History,”  edited  by  M.  S. 
Brown,  note,  341 

“Father  Marquette,”  by  S.  Hedges, 
note,  344 

“The  German  Revolution  of  1849,”  by 

C.  W.  Dahlinger,  note,  219-220 

“II  Secolo  XIX,”  by  P.  Turiello,  note, 
227 

“Impeachment  and  Trial  of  Andrew 
Johnson,”  by  D.  M.  Dewitt,  note, 
220-221 

“The  Lords  Baltimore  and  the  Mary- 
land Palatinate,”  by  C.  C.  Hall, 
note,  51 1 

“A  History  of  the  Middle  Ages,”  by 

D.  C.  Munro,  review,  365-366 

“A  History  of  Modern  Europe,”  by  M. 

Whitcomb,  review,  522-523 
“Monasticism,”  by  A.  Harnack,  note, 
343-344 

“Napoleon  and  His  Marshals,”  by  J. 
T.  Headley,  note,  222 


[555] 


Index  of  Subjects 


“Ohio  and  Her  Western  Reserve,”  by 
A.  Mathews,  note,  223 
“The  Old  Glade  (Forbes)  Road,”  by 
A.  B.  Hulbert,  note,  222 
“Pioneers  of  Unadilla  Village,”  by  F. 

W.  Halsey,  note,  51 1-5 12 
“Recent  European  History,”  by  G.  E. 
Fellows,  note,  221 

“The  Romance  of  the  Civil  War,”  by 

A.  B.  Hart,  note,  512 

“Social  Life  in  the  Early  Republic,” 
by  A.  H.  Wharton,  note,  227-228 
“Social  New  York  Under  the  Georges,” 
by  Esther  Singleton,  note,  227-228 
Holland.  “Young  People’s  History  of  Hol- 
land,” by  W.  E.  Griffis,  note,  510-511 
Humane  Association,  National,  545-546 
Imperialism.  “Imperialism,  a Study,”  by 
J.  A.  Hobson,  note,  5 12-5 13 
India.  “Buddhist  India,”  by  T.  W.  Rhys- 
Davids,  review,  369-370 

“Winter  India,”  by  E.  R.  Scidmore, 
note,  346 

Insurance.  Fire  Insurance  Rates  and 
Methods.  See  Fire  Insurance 
International  Law.  Private  and  Interna- 
tional Law  in  the  Enforcement  of 
Claims,  85-96.  Claims  * in  the  United 
States,  85-87;  in  foreign  countries  in  gen- 
eral, 87-89;  liability  under  the  civil  law, 
89-91;  in  Spanish  America,  91-92;  claims 
under  international  law,  92-93;  domestic 
commissions,  93-94;  arbitrary  practices, 
94;  mixed  commissions,  94-95;  The 
Hague  tribunal  and  the  second  Pan- 
American  conference,  95-96 

“Cases  on  International  Law,”  by  J. 

B.  Scott,  note,  514 

Iron.  “The  Manufacture  and  Properties  of 
Iron  and  Steel,”  by  H.  H.  Campbell, 
note,  341 

Jobbing.  Present  Day  Jobbing,  451-458. 
Relation  of  the  jobber  to  the  manufacturer, 
451;  jobber’s  business  has  developed  dur- 
ing last  fifty  years,  452;  reliance  of  the 
jobber  upon  the  traveling  salesman,  453; 
analysis  of  the  jobber’s  functions,  454; 
catalogue  jobbers,  455;  catalogue  retailers, 


456;  jobbers’  associations,  457 

Juvenile  Courts.  Separate  Courts  for  Juve- 
nile and  Probation  Officers  in  Rhode 
Island,  540 

Labor.  The  Labor  System  of  the  John 
B.  Stetson  Company,  445-450.  Capitali- 
zation and  number  of  employees,  445; 
aims  of  the  company  in  its  labor  system, 
445-446;  apprenticeship  system,  446;  sys- 
tem of  promotion,  447;  prizes  and 
bonuses,  building  association,  savings 
fund,  stock  allotment,  448;  beneficial 
fund,  pensions,  Sunday-school,  hospital, 
449;  object  of  these  schemes  and  success 
of  the  system,  450 

“Organized  Self-Help,”  by  H.  N.  Cas- 
son,  note,  218-219 

Latin  America.  Some  of  the  Causes  of 
Conflict  Between  Europe  and  Latin 
America,  71-82.  Causes  of  conflict  not 
new  in  principle,  71;  economic  facts  ac- 
counting for  Europe’s  interest,  in  Latin 
America,  71-72;  fundamental  principles  of 
international  law  considered,  72.-7  5; 
sources  of  claims  against  Latin-American 
states,  75-77;  claims  growing  out  of  con- 
tracts, 77-79;  collection  of  pecuniary 
private  claims  through  national  interven- 
tion, 79-80;  position  of  United  States  re- 
garding European  and  Latin  American  re- 
lations, 81-82 


Latin  America  and  the  Mexican 
Conference.  See  Mexican  Confer- 
ence. 

Law.  “The  Oldest  Code  of  Laws  in  the 
World,”  translated  by  C.  H.  W.  Johns, 
note,  344-345 

Mexico.  Latin  America  and  the  Mexi 
can  Conference,  47-55.  Obstacles  to 
political  development  in  South  America. 
47-49;  financial  and  social  conditions  in 
South  America,  49-50;  effects  of  bound 
ary  disputes,  51;  position  of  South 
American  delegates  on  question  of  arbi 
tration,  52-54;  future  prospects,  55 

Street  railways,  531-532;  water  sup 
ply  and  sanitation  of  municipalities. 
532;  police  system,  532-533;  munici- 
pal administration,  533-534;  munici 
pal  theaters,  534 

Mississippi.  Educational  Progress  in.  See 
Schools. 

Publication  of  Mississippi  Historical 
Society,  edited  by  F.  L.  Riley,  note, 
346 

Money.  “Legal  Tender,”  by  S.  P.  Brecken- 
ridge,  note,  217 

“Money  and  Banking,”  by  W.  A. 

Scott,  review,  370-372 
“The  Principles  of  Money,”  by  J.  L. 
Laughlin,  review,  361-365 

Monroe  Doctrine.  The  Position  of  the 
United  States  on  the  American  Con- 
tinent. Some  phases  of  the  Monroe 
Doctrine,  1-19.  President  Polk’s  doc- 
trine, 1-3;  growth  of  the  Monroe  Doc- 
trine, 3;  the  casg  of  Santo  Domingo,  3-6; 
modern  European  views  of  the  Monroe 
Doctrine,  6-10;  collection  of  debts  histori- 
cally considered,  10-13;  some  recent  dis- 
cussion, 13-14;  problems  of  the  future, 

14- 15;  hostility  to  the  Monroe  Doctrine, 

15- 19 

Municipal  Accounting.  Uniformity  in 
Municipal  Accounting  in  Massachusetts, 
378-379 

Municipal  Government.  Notes  on,  375-389; 


Municipal  League,  National.  Ninth  An- 
nual Meeting  of,  375-376;  Report  of  Sec- 
retary, 376-378 

Municipal  Association  of  Cleveland,  381-383 
Municipal  Administration  in  Mexico,  533- 
534 

Municipal  Theaters  in  Mexico,  534 
“Municipal  Year-Book  for  1902,”  edited 
by  M.  N.  Baker,  note,  217 
Negro.  Negro  Education  in  the  South, 
320-329.  Relations  between  the  races 
during  the  Civil  War,  320-321;  estrange- 
ment during  reconstruction  era,  321-323; 
problem  to  be  solved  by  the  South,  324; 
progress  thus  far  achieved,  325;  agri- 
cultural education,  326;  higher  educa- 
tion, 327;  outlook  for  future,  329 

“The  Souls  of  Black  Folk,”  by  W.  E. 
B.  DuBois,  review,  230-232 
New  York.  Playgrounds  in  New  York 
Parks,  396-397 

Women  Tenement  Inspectors  in,  394- 
396 

Nominations.  Direct,  379-380 
North  Carolina.  Current  Problems  in. 
See  Schools 

Ohio.  “Ohio  Municipal  Code,”  by  W.  H. 

Ellis,  note,  510 
Penal  Institutions. 

Commission  to  Report  on  a State  Re- 
formatory in  Connecticut,  540-541 
The  New  Penitentiary  near  Paris,  541 


[556] 


Index  of  Subjects 


Pennsylvania.  “Rural  Sanitary  Administra- 
tion in  Pennsylvania,”  by  W.  H.  Allen, 
review,  516-517 

“Vetoes  by  the  Governor,”  note,  514- 
5J5 

Peru.  Ihe  Position  of  Peru  in  South 
American  Affairs,  59-65.  Revolution 
not  perpetual  in  South  America,  59;  con- 
dition of  Peru  when  conquered  by  Pi- 
zarro  and  when  of  a colony  of  Spain,  I 
59-60;  University  of  San  Marcos,  Lima,  ! 

60;  Peru’s  attitude  toward  other  South 
American  republics,  61;  representation  at 
international  congresses,  participation  in 
arbitrations,  foreign  treaties  entered  into, 

62 ; future  lies  in  commercial  develop- 
ment, 63;  importance  of  the  Panama 
Canal  and  International  Railroad,  64 

Philanthropy.  “Constructive  and  Preventive 
Philanthropy,”  by  J.  Lee,  note,  222-223. 
Philanthropy,  Charities  and  Social 
Problems,  390-401;  535-548 
Lending  Money  to  the  Poor,  398-399 
Visiting  Nurses,  399-400 

Philippines.  Rice  Culture,  402-403;  re- 
ports of  provincial  governors,  403-408; 
weather  bureau,  408-409;  tobacco,  409- 
41 1 ; Filipino  labor,  41 1 

Philosophy.  “Spinoza’s  Political  and  Ethi- 
cal Philosophy,”  by  R.  A.  Duff,  review, 
356-358 

Police.  Police  System  of  Mexico,  532-533 

Politics.  “Early  Political  Machinery  in  the 
United  States,”  by  G.  D.  Luetscher,  re- 
view, 521-522 

“A  Fight  for  the  City,”  by  A.  Hodder, 
note,  513 

Prison  Association.  Annual  Meeting  of  the 
Connecticut,  541 

Prison  Congress.  National,  of  1903,  546- 
548 

Private  Law.  Private  and  International 
Law  in  the  Enforcement  of  Claims.  See 
International  Law 

Public  Works.  “Municipal  Public  Works,” 
by  S.  Whinery,  note,  515 

Quasi-Public  Works  in  Montana,  378 
Water  Supply  in  Mexico,  532 
Water  Works  in  Providence,  385 

Railways,  The  Distribution  of  Stock- 
holdings in  American  Railways,  475- 
490.  Economic  and  social  effects,  stock 
concentration,  475;  nature  of  the  statis-  J 
tical  material,  476;  distribution  of  the 
stocks  of  the  Illinois  Central,  476;  of 
the  Boston  and  Albany,  and  Boston  and 
Maine  Railways,  476;  the  Santa  Fe,  478; 
tabulation  of  principal  railway  systems 
according  to  concentration  of  stockhold- 
ings, 478-481;  discussion  of  these  tables, 
481-483;  changes  taking  place  in  con- 
centration of  stockholdings,  483;  average 
amount  of  stock  held  by  single  holders 
in  various  states  and  sections,  484-486; 
extent  to  which  the  same  persons  are 
represented  on  different  directorates,  487: 
conclusions  regarding  concentration  and 
distribution  of  stockholders,  488-490 
“The  Great  Siberian  Railway,”  by  M. 

M.  Shoemaker,  note,  225-226 
Railway  Franchises  in  Buffalo,  528 
Railway  Franchises  in  St.  Louis,  527 
“Railway  Legislation  in  the  United 
States,”  by  B.  H.  Meyer,  note,  345- 
346 

Street  Railways  in  Mexico,  531-532 
Street  Railways  in  Providence,  384-385 
Street  Railways  in  New  South  Wales, 
386-389 

[557] 


Reciprocity.  Reciprocity  with  Cuba,  129- 
147.  Period  immediately  following  1880, 
129;  international  and  American  confer- 
ence of  1889,  134;  reciprocity  treaty  with 
Spain,  1891,  134;  abrogation  of  this 

treaty  in  1894,  President  Roosevelt 

urges  reciprocity  with  Cuba,  137;  reasons 
for  Cuban  reciprocity,  139-146;  Cuban 
reciprocity  of  interest  only  to  American 
manufacturers,  147 

Rhode  Island.  “Rhode  Island,  Its  Making 
and  Its  Meaning,”  by  I.  B.  Richman,  re- 
view, 237-238 

Rice  Culture.  In  the  Philippines,  402-403 

Russia.  “Greater  Russia,”  by  W.  Gerrare, 
review,  232-234. 

Sanitary  Administration.  “Rural  Sanitary 
Administration  in  Pennsylvania,”  by  W. 
H.  Allen,  review,  516-517 

Sanitation.  Sanitation  of  Congested 
Areas  in  England,  530-531 
Sanitation  of  Municipalities  in  Mexico, 
532 

Schools.  Concentration  of  Schools  and 
Transportation  of  Pupils,  257-260.  Ex- 
perience of  Duval  County.  Florida,  258; 
advantages  of  the  plan  ana  better  organi- 
zation of  teachers’  work,  truancy  elimi- 
nated, 259;  more  children  reached,  greater 
safety  of  children,  period  of  education 
prolonged,  260 

Current  Problems  in  Alabama,  280- 
283.  Work  of  the  field  agent  of  the 
Southern  Education  Board,  280-283 
Current  Problems  in  North  Caro- 
lina, 293-303.  Work  of  field  agent 
of  Southern  Education  Board,  293- 
303;  growth  of  local  taxation  for 
schools,  301-303 

Educational  Progress  in  Mississippi, 

304-309 

Educational  Work  in  Tennessee,  284- 
286.  Work  of  the  field  agent  of  the 
Southern  Education  Board,  special 
needs  in  Tennessee,  284-286 
A Model  School,  245-248.  Model 
School,  245-246;  rural  schools  should 
be  harmonized  with  rural  life,  sur- 
roundings should  be  made  more  at- 
tractive and  curriculum  broader,  247; 
greater  emphasis  laid  on  music  and 
qualifications  of  teachers,  248 
The  Southwestern  Field.  287-292. 
Work  of  field  agent  of  Southern  Edu- 
cation Board,  general  increase  of  in- 
terest in  and  public  taxation  for 
school  system,  287-292 

Social  Problems.  Home  Life  versus  Insti- 
tution Life,  538-540 

Charities,  Philanthropy  and  Social 
Problems,  390-401;  535-548 

Society.  “An  Examination  of  Society,”  by 
L.  Wallis,  note,  515 

Industrial.  “Studies  in  the  Evolution 
of  Industrial  Society,”  by  R.  T.  Ely, 
review,  518-520 

Sociology.  “Americans  in  Process,”  edited 
by  R.  A.  Woods,  review,  524-525 

“L’Annee  Sociologique,  edited  by  E. 

Durkheim,  note,  341-342 
“Human  Nature  and  the  Social 
Order,”  by  C.  H.  Cooley,  review, 
517-518 

“Primal  Law,”  by  J.  J.  Atkinson,  re- 
view, 520-521 

“Pure  Sociology,”  by  L.  F.  Ward,  re- 
view, 239-242 

“Social  Origins,”  by  A.  Lang,  review, 
520-521 


Index  of  Subjects 


South  America.  Ethnic  Factors  in,  25-  r 
31.  Area  of  South  America,  25;  climate, 
25-26;  population,  27;  distribution  of 
whites  and  Indians,  28;  origin  of  the 
white  population,  29;  absence  of  the 
negro  from  South  America,  30;  urban 
and  rural  population,  31 

Causes  of  Our  Failure  to  Develop 
South  American  Trade.  See 
Trade. 

European  Trade  with  South  Amer- 
ica. See  Trade. 

The  Position  of  Peru  in  South 
American  Affairs.  See  Peru. 

South.  The  Conference  for  Education  in 
the  South.  See  Education. 

Needs  of  the  New  South,  266-270. 
Lack  of  facilities  for  technical  educa- 
tion, 266;  great  demand  for  tech-  | 
nical  experts  in  Southern  industries, 
268-269;  special  needs  of  the  white 
race  in  technical  education,  269-270. 

Negro  Education  in  the  South.  See 
Negro 

The  University  in  the  South.  See 
University. 

Spain.  “Spain  and  Her  People,”  by  J. 
Zimmerman,  note,  349-350 

Standard  Oil  Company.  “The  Rise  and 
Progress  of  the  Standard  Oil  Company,” 
by  G.  H.  Montague,  note,  513 

Steel.  “The  Manufacture  and  Properties 
of  Iron  and  Steel,”  by  H.  H.  Campbell, 
note,  341 

Stockholdings.  The  Distribution  of 
Stockholdings  in  American  Railways. 
See  Railways 

Suffrage.  “L’Electorat  politique  et  admin- 
istratif  en  Europe,”  by  O.  Pyfferoen, 
note,  225 

Sugar-Beet  Culture.  Conditions  Affect- 
ing Sugar-Beet  Culture  in  the  United 
States,  171-187.  German  beet-sugar  in- 
dustry, 179;  possibilities  of  sugar-beet 
culture  in  the  United  States,  180-182; 
relation  of  sugar-beet  to  corn  culture, 
183-186;  sugar-beet  culture  on  a large 
scale  in  the  United  States  not  probable, 
187 

Taxation.  Plan  for  relieving  taxation  in 
New  York  City,  380-381 

“A  Treatise  on  the  Power  of  Taxa- 
tion,” by  F.  N.  Judson,  review,  360- 
361 

Teacher.  The  Teacher  and  the  State, 
249-256.  Supreme  importance  of  teacher 
in  regeneration  of  the  South,  249-251; 
lack  of  adequate  training  of  teachers,  252- 
253;  responsibility  of  the  state  in  provid- 
ing teachers,  254;  means  to  be  adopted, 
255-256 

Tennessee.  Educational  Work  in.  See 
Schools 

Trade.  Causes  of  Our  Failure  to  De- 
velop South  American  Trade,  153-156. 
Our  neglect  of  South  American  trade, 
153;  American  goods  desired  in  South 
America,  153;  South  American  trade  not 
yet  considered  worth  seeking  by  Ameri- 


cans, 154;  European  countries  eager  for 
Latin-American  trade,  155;  desirability  of 
our  studying  South  American  needs,  156. 

European  Trade  Relations  with 
South  America,  159-168.  How 
South  American  trade  differs  from 
that  of  the  United  States,  159;  dif- 
ferences in  resources  and  economic 
development,  160-161;  analysis  of 
conditions  in  Brazil  and  Argentine, 
162-164;  the  west-coast  republics, 
165;  future  outlook,  167-168 
Trades  Unionism,  427-432.  Origin  of 
trades  unions,  427;  membership  and  aims, 
428;  restriction  of  production  by  trades 
unions,  429;  their  opposition  to  piece  work 
and  premium  systems,  430;  methods  fol- 
lowed by  trades  unions  often  objection- 
able, 431;  the  necessity  for  conservative 
leadership,  432 

Treaty.  Treaty  Relations  of  the  United 
States  and  Colombia,  115-126.  Treaty 
with  New  Granada,  1846,  1 1 5 ; Panama 
riot  of  1856,  1 16;  settlement  of  claims 
growing  out  of  this  riot,  116-118;  the 
question  of  American  intervention  in 
Panama  in  1862,  1 19-120;  landing  of 

American  marines  in  Panama,  121;  canal 
treaty  proposed  in  1868,  122;  insurrection 
r873»  123;  question  of  conveying  crim- 
inals across  isthmus  raised  in  1878,  123; 
principle  of  neutralization  of  Panama 
Canal,  124;  intervention  of  President 
Cleveland  to  maintain  order  in  Panama, 
125;  reference  to  treaty  now  pending,  126 
United  States.  Argentine  Commerce  with 
United  States  and  Europe.  See  Com- 
merce. 

Trade  Relations  of  the  United 
States  and  Colombia.  See  Trade. 
University.  The  University  in  the 
South,  261-265.  Large  number  of  small 
colleges  and  universities  throughout  the 
country,  261-262;  rise  in  standards,  262; 
increased  freedom  of  speech,  263 ; pres- 
ent work  and  aims  of  Southern  universi- 
ties, 264-265 

West  Indies.  Notes  on  Danish,  99-110. 
Colonization  efforts  by  Scandinavian 
people,  99;  Denmark’s  colonial  policy  in 
imitation  of  Holland  and  England,  99; 
description  of  St.  Croix  and  St.  Thomas, 
100;  difficulties  encountered  by  Denmark 
in  her  West  Indian  possessions,  101-102; 
failure  of  the  Danish  West  India  Com- 
pany, 102;  slavery  a necessary  evil,  103; 
emancipation  of  the  slaves,  1 04-105;  polit- 
ical history  since  emancipation,  106; 
climate  and  economic  condition  of  the 
islands,  107-110 

Wheat.  “The  Story  of  a Grain  of  Wheat,” 
by  W.  C.  Edgar,  note,  342 
Whipping  Post  in  Delaware,  541-542 
Women.  “Republics  versus  Women,”  by 
K.  Woolsey,  note,  349 
Women-Workers.  “The  Woman  Who 
Toils,”  by  Mrs.  J.  Van  Vorst  and  M.  Van 
Vorst,  review,  238-239 


[558] 


THE  ANNALS 

OF  THE 

AMERICAN  ACADEMY 


POLITICAL  AND  SOCIAL  SCIENCE 


ISSUED  BI-MONTHLY 


VOL.  XXII 

JULY  1903— DECEMBER.  1903 


Editor:  EMORY  R.  JOHNSON 

associate  editors:  SAMUEL  McCUNE  LINDSAY,  JAMES  T.  YOUNG 


PHILADELPHIA 

American  Academy  of  Political  and  Social  Science 

1903 


Copyright,  1903,  by  the  American  Academy  of  Political  and  Social  Science 
All  rights  reserved 


CONTENTS 


PRINCIPAL  PAPERS 

PAGE 

Alderman,  Edwin  A.  The  Southwestern  Field 287 

Beck,  Herbert.  The  Value  of  Auditing  to  the  Business  Man.  . 433 

Betts,  Walter  C.  Fire  Insurance  Rates  and  Methods 413 

Buchanan,  William  I.  Latin  America  and  the  Mexican  Con- 
ference   47 

Calderon,  Manuel  Alvarez.  The  Position  of  Peru  in  South 

American  Affairs 59 

Carlton,  Frank  T.  The  Growth  and  Management  of  Ameri- 
can Agriculture 491 

Claxton,  P.  P.  A Model  School 245 

Dabney,  Charles  W.  Educational  Work  in  Tennessee 284 

Daniels,  Josephus.  The  Progress  of  Southern  Education.  . . . 310 
Emory,  Frederic.  Causes  of  Our  Failure  to  Develop  South 

American  Trade 153 

Freeman,  Albert  T.  The  Labor  System  of  the  John  B.  Stet- 
son Company 445 

Fulton,  Robert  B.  Educational  Progress  in  Mississippi 304 

Glenn,  G.  P.  The  Concentration  of  Schools  and  Transporta- 
tion of  Pupils 257 

Graham,  Joseph  B.  Current  Problems  in  Alabama 280 

Hall,  Lyman.  Needs  of  the  New  South 266 

Hill,  Walter  B.  Negro  Education  in  the  South 320 

Huebner,  Solomon.  The  Distribution  of  Stockholdings  in 

American  Railways 475 

Keller,  Albert  G.  Notes  on  the  Danish  West  Indies 99 

Kirkland,  J.  H.  The  Teacher  and  the  State 249 

Latane,  John  H.  The  Treaty  Relations  of  the  United  States 

and  Colombia 1 1 5 

Lauer,  Conrad  N.  The  Importance  of  Cost-Keeping  to  the 

Manufacturer  459 

Loomis,  Francis  B.  The  Position  of  the  United  States  on  the 

American  Continent — Some  Phases  of  the  Monroe  Doctrine  1 

(iii) 


IV 


Contents 


PAGE 

McIver,  Charles  D.  Current  Problems  in  North  Carolina. . . . 293 

Mims,  Edwin.  The  University  in  the  South 261 

Moore,  John  Bassett.  The  Application  of  the  Principle  of 

International  Arbitration  on  the  American  Continents 35. 

Nelson,  Ernesto.  Argentine  Commerce  with  the  United  States 

and  Europe 171 

Ogden,  Robert  C.  The  Conference  for  Education  in  the  South  271 

Outerbridge,  Alexander  E.,  Jr.  Trades  Unionism 427 

Powers,  John  O.  Advertising 470 

Ritter,  James  H.  Present  Day  Jobbing 451 

Schoff,  Wilfred  H.  European  Trade  Relations  with  South 

America 1 59 

Scott,  George  Winfield.  Some  of  the  Causes  of  Conflict 

Between  Europe  and  Latin  America 71 

Taylor,  Henry  C.  Conditions  Affecting  Sugar-Beet  Culture  in 

the  United  States 179 

Walton,  Clifford  Stevens.  Private  and  International  Law  in 

the  Enforcement  of  Claims 85 

Williams,  Talcott.  Ethnic  Factors  in  South  America 25 

Willis,  H.  Parker.  Reciprocity  with  Cuba 129- 


PERSONAL  NOTES 


Ames,  H.  V.,  333- 
Bailey,  W.  B.,  335. 
Benton,  E.  J.,  507. 
Boynton,  A.  J.,  504. 
Brough,  C.  H.,  330. 
Bullock,  C.  J..  331- 
Callender,  G.  S.,  336. 
Cleveland,  F.  A.,  505. 
Conner,  J.  E.,  505. 
Cutler,  J.  E.,  336. 
Davis,  E.  H.,  507. 
Finley,  J.  H.,  505. 
Fleming,  W.  L.,  335. 
Garner,  J.  W.,  506. 
Gay,  E.  F.,  331. 

Hall,  A.  C.,  507- 
Hunt,  Agnes,  335- 


Lingelbach,  W.  E.,  334. 
Marsh,  F.  B„  504. 
McCrea,  R.  C.,  330. 
McVey,  F.  L.,  332. 
Mitchell,  T.  W.,  506. 
Paxson,  F.  L.,  330. 
Price,  R.  R.,  331. 
Price,  W.  H.,  334. 
Rankin,  Hugh,  336. 
Rawles,  W.  A.,  331. 
Roberts,  F.  H.  H.,  330. 
Shaw,  H.  B.,  334. 
Smalley,  H.  S.,  504. 
Smith,  J.  R.,  506. 
Smith,  W.  R.,  335. 
Swain,  H.  H.,  332. 

Van  Tyne,  C.  H.,  504. 


Contents 


v 


BOOK  DEPARTMENT 

Conducted  by  Frederick  A.  Cleveland  and  James  W.  Garner 


REVIEWS 

PAGE 

Allen,  W.  H.  Rural  Sanitary  Administration  in  Pennsylvania. — .S'.  W. 

Abbott  516 

Atkinson,  J.  J.  Primal  Law. — 7.  E.  Hagerty 520 

Bryce,  James.  Studies  in  Contemporary  Biography. — W . E.  Lingelbach. . 350 

Bucher,  Karl.  Arbeit  und  Rhythmus. — 7.  Q.  Adams 353 

Carpenter,  E.  J.  American  Advance,  a Study  in  Territorial  Expansion. — 

7.  7.  Cox 355 

Cooley,  C.  H.  Human  Nature  and  the  Social  Order. — Carl  Kelsey 517 

Dewey,  D.  R.  Financial  History  of  the  United  States. — A.  S.  Bolles 228 

DuBois,  W.  E.  B.  Souls  of  Black  Folk. — Carl  Kelsey 230 

Duff,  R.  A.  Spinoza’s  Political  and  Ethical  Philosophy. — 7.  W.  Garner.  . 356 
Ely,  R.  T.  Studies ‘in  the  Evolution  of  Industrial  Society. — R.  C.  McCrea  518 
Gerrare,  Wirt.  In  Greater  Russia — the  Continental  Empire  of  the  Old 

World. — 7.  R.  Smith 232 

Haskins,  C.  W.  How  to  Keep  Household  Accounts. — F.  A.  Cleveland . . . 358 

Hogarth,  D.  G.  The  Nearer  East. — S.  N.  Patten 359 

Judson,  F.  N.  A Treatise  on  the  Power  of  Taxation,  State  and  Federal, 

in  the  United  States. — F.  A.  Fetter 360 

Lang,  Andrew.  Social  Origins. — 7.  E.  Hagerty 520 

Laughlin,  J.  L.  Principles  of  Money. — E.  S.  Meade 361 

Luetscher,  G.  D.  Early  Political  Machinery  in  the  United  States. — 7.  T. 

Young 521 

Munro,  D.  C.  A History  of  the  Middle  Ages. — E.  P.  Cheyney 365 

Patten,  S.  N.  Heredity  and  Social  Progress. — 7.  P.  Goode 366 

Pierson,  N.  G.  Principles  of  Economics,  Vol.  I. — 77.  P.  Willis 234 

Rhys-Davids,  T.  W.  Buddhist  India. — C.  A.  Ellwood 369 

Richman,  I.  B.  Rhode  Island,  Its  Making  and  Its  Meaning,  1636-1683.— 

C.  77.  Van  Tyne 237 

Scott,  W.  A.  Money  and  Banking. — 77.  A.  Millis 370 

Van  Vorst,  Mrs.  John  and  Marie.  The  Woman  Who  Toils. — Emily  F. 

Meade  238 

Ward,  L.  F.  Pure  Sociology. — 7.  E.  Hagerty 239 

Whitcomb,  Merrick.  A History  of  Modern  Europe. — W.  E.  Lingelbach  522 
Woodburn,  J.  A.  American  Republic  and  Its  Government. — 7.  T.  Young.  . 372 
Woods,  R.  A.,  Ed.  by.  Americans  in  Process. — Emily  F.  Meade 524 


NOTES 

Armes,  W.  D.,  Ed.  by.  Autobiography  of  Joseph  LeConte 509 

Baker,  M.  N.,  Ed.  by.  Municipal  Year-Book,  1902 217 

Breckenridge,  S.  P.  Legal  Tender:  A Study  in  English  and  American 

Monetary  History  217 


VI 


Contents 


PAGE 

Broome,  E.  C.  A Historical  and  Critical  Discussion  of  College  Admission 

Requirements  217 

Brown,  M.  S.,  Ed.  by.  Epoch-Making  Papers  in  United  States  History. . 341 

Buell,  A.  C.  Sir  William  Johnson 509 

Campbell,  H.  H.  Manufacture  and  Properties  of  Iron  and  Steel 341 

Casson,  H.  N.  Organized  Self-Help 218 

Caustier,  E.  Les  Entrailles  de  la  Terre 219 

Dahlinger,  C.  W.  The  German  Revolution  of  1849 219 

Dewitt,  D.  M.  Impeachment  and  Trial  of  Andrew  Johnson 220 

Dos  Passos,  J.  R.  The  Anglo-Saxon  Century  and  the  Unification  of  the 

English-Speaking  People  509 

Durkheim,  Emile,  Ed.  by.  L’Annee  Sociologique  (1901-1902) 341 

Edgar,  W.  C.  Story  of  a Grain  of  Wheat 342 

Elkinton,  Joseph.  The  Doukhobors 342 

Ellis,  W.  H.  Ohio  Municipal  Code 510 

Fellows,  G.  E.  Recent  European  History  (1789-1900) 221 

Foster,  J.  W.  American  Diplomacy  in  the  Orient 221 

Freund,  Ernst.  Empire  and  Sovereignty 343 

Griffis,  W.  E.  Young  People’s  History  of  Plolland 510 

Hall,  C.  C.  The  Lords  Baltimore  and  the  Maryland  Palatinate 5 1 1 

Halsey,  F.  W.  Pioneers  of  Unadilla  Village 51 1 

Harnack,  Adolph.  Monasticism : Its  Ideals  and  History  (and)  The  Con- 
fessions of  St.  Augustine 343 

Hart,  A.  B.  Romance  of  the  Civil  War 512 

Headley,  J.  T.  Napoleon  and  His  Marshals 222 

Hedges,  Samuel.  Father  Marquette 344 

Hobson,  J.  A.  Imperialism,  a Study 512 

Hodder,  Alfred.  A Fight  for  the  City 513 

Hulbert,  A.  B.  Old  Glade  (Forbes)  Road,  Vol.  V of  Historic  Highways 

of  America  222 

Hunt,  G.  Life  of  James  Madison 513 

Johns,  C.  H.  W.  Oldest  Code  of  Laws  in  the  World 344 

Lederer,  John.  Discoveries  of  John  Lederer 345 

Lee,  Joseph.  Constructive  and  Preventive  Philanthropy 222 

Linn,  W.  A.  Horace  Greeley 345 

Mathews,  Alfred.  Ohio  and  Her  Western  Reserve 223 

McCaleb,  W.  F.  Aaron  Burr  Conspiracy 223 

Meyer,  B.  H.  Railway  Legislation  in  the  United  States 345 

Montague,  G.  H.  Rise  and  Progress  of  the  Standard  Oil  Company 513 

Pyfferoen,  Oscar.  L’Electorat  Politique  et  Administratif  en  Europe.  ..  . 225 

Peabody,  H.  G.  Glimpses  of  the  Grand  Canyon  of  Arizona 514 

Pratt,  S.  S.  Work  of  Wall  Street 224 

Riley,  F.  L.,  Ed.  by.  Publications  of  the  Mississippi  Historical  Society.  . 346 

Scidmore,  E.  R.  Winter  India 346 

Scott,  J.  B.  Cases  on  International  Law 5*4 

Shoemaker,  M.  M.  Great  Siberian  Railway 225 

Simons,  A.  M.  American  Farmer 226 

Singleton,  Esther.  Social  New  York  under  the  Georges 227 


Contents  vii 

PAGE 

Todd,  C.  B.  The  Real  Benedict  Arnold 514 

Turiello,  Pasquale.  II  Secolo  XIX 227 

Van  Tyne,  C.  H.  Letters  of  Daniel  Webster.  ..  347 

Vetoes  by  the  Governor,  of  Bills  Passed  by  the  Legislative  Session  of  1903  514 

Wallis,  Louis.  An  Examination  of  Society 515 

Wellby,  M.  S.  ’Twixt  Sirdar  and  Menelik 348 

Wharton,  Anne  H.  Social  Life  in  the  Early  Republic 227 

Whinery,  S.  Municipal  Public  Works 515 

Woolsey,  Kate.  Republics  versus  Women 349 

Zimmerman,  Jeremiah.  Spain  and  Her  People 349 


NOTES 

I.  MUNICIPAL  GOVERNMENT 

Conducted  by  L.  S.  Rowe 

Buffalo. — Railway  Franchises 528 

Cincinnati. — Civic  Organization 383 

Constitutional  Amendments 383 

Cleveland  Municipal  Association 381 

Street  Railways  382 

Direct  Nominations 379 

Duluth. — Civic  Activity  386 

England. — Sanitation  of  Congested  Areas 530 

Massachusetts. — Uniformity  in  Municipal  Accounting 378 

Mexico. — Street  Railways. — Water  Supply  and  Sanitation  of  Municipali- 
ties.— Police  System. — Municipal  Administration. — Municipal 

Theaters  531 

Minneapolis. — Civic  Improvement  Associations 528 

Montana. — Quasi-Public  Works  378 

National  Municipal  League. — Ninth  Annual  Meeting 375 

Report  of  Secretary 376 

New  Jersey. — State  Civic  Federation 529 

New  South  Wales,  Australia. — Street  Railways 386 

New  York  City. — Plan*  for  Relieving  Taxation 380 

Pennsylvania. — Ownership  of  Public  Works 379 

Providence. — Street  Railways  384 

Water  Works  .' 385 

St.  Louis. — Street  Railway  Franchises 527 


II.  PHILANTHROPY,  CHARITIES  AND  SOCIAL  PROBLEMS 

Conducted  by  Mrs.  Emily  E.  Williamson 

Child  Labor  Law  in  Massachusetts 540 

Children’s  Aid  Society,  Boston  397 

Children’s  Employment  Bill  in  England 398 


Contents 


viii 

PAGE 

Children’s  Guardians,  New  Jersey  State  Board  of 535 

Children’s  Institutions  Department,  Boston,  Report  of 536 

Children,  Prevention  of  Cruelty  to ' 537 

Connecticut  State  Prison  Association,  Annual  Meeting  of . . 541 

Graft  542 

Hebrew  Technical  Institute 400 

Home  Life  versus  Institution  Life 538 

Humane  Association,  National  545 

Jewish  Charity  542 

Juvenile  and  Probation  Officers  in  Rhode  Island,  Separate  Courts  for 540 

Lending  Money  to  the  Poor 398 

National  Conference  of  Charities  and  Corrections,  held  in  Atlanta, 

Georgia,  May  6,  1903 390 

Penitentiary  (New)  near  Paris 541 

Playgrounds  in  New  York  Parks 396 

Prison  Congress  (National)  of  1903 546 

Reformatory  in  Connecticut,  Commission  to  Report  on 540 

Visiting  Nurses  399 

Whipping  Post  in  Delaware 541 

Women  Tenement  Inspectors  in  New  York 394 


III.  NOTES  ON  COLONIES  AND  COLONIAL  GOVERNMENT 

Conducted  by  James  T.  Young 

Philippines. — Rice  Culture;  Reports  of  Provincial  Governors;  Weather 
Bureau;  Tobacco;  Labor 402 


# 


